ANNUAL REPORT · 2017-10-06 · to restore collective bargaining for improvement in public education 10 | Education Labour Relations Council | 2016/17 Annual Report 4. LEGISLATIVE

EDUCATION LABOURRELATIONS COUNCIL

ANNUAL REPORT

Upholding the prescripts of the Labour Relations Act, to restore collective bargaining for improvement

in public education

Education Labour Relations Council (ELRC)

2016/17

Upholding the prescripts of the Labour Relations Act, to restore collective bargaining for improvement in public education

Education Labour Relations Council | 2016/17 Annual Report | 1

Education Labour Relations Council

(ELRC)ANNUAL REPORT

2016/17




2 | Education Labour Relations Council | 2016/17 Annual Report

Contents

PART A: GENERAL INFORMATION

1. ELRC GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2. LIST OF ABBREVIATIONS/ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3. STRATEGIC OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.1 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.3 Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.4 Strategic Outcome Orientated Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

4. LEGISLATIVE AND OTHER MANDATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5. ORGANISATIONAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

6. FOREWORD BY THE CHAIRPERSON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

7. ACCOUNTING OFFICER’S OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

PART B: PERFORMANCE INFORMATION

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2. OVERVIEW OF ELRC’S PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2.1 Service Delivery Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2.2 Organisational Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2.3 Key Policy Developments and Legislative Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

2.4 Strategic Outcome Oriented Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3. PERFORMANCE INFORMATION BY PROGRAMME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.1 PROGRAMME 1: Collective Bargaining Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.2 PROGRAMME 2: Dispute Management Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

3.3 PROGRAMME 3: Corporate Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

3.4 PROGRAMME 4: Finance and Supply Chain Management Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

3.5 PROGRAMME 5: Executive Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

4. SUMMARY OF FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

4.1 Revenue Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

5. PROGRAMME EXPENDITURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

5.1 Capital Investment, Maintenance and Asset Management Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107



PART C: GOVERNANCE

1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

2. THE ACCOUNTING AUTHORITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

3. RISK MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

4. INTERNAL CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

5. AUDIT COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

6. COMPLIANCE WITH LAWS AND REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

7. FRAUD AND CORRUPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

8. POLICY REGULATORY FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

9. CODE OF CONDUCT AND ETHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

10. OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

11. SOCIAL RESPONSIBILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

12. AUDIT COMMITTEE REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

PART D: HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

2. HUMAN RESOURCE OVERSIGHT STATISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

PART E: FINANCIAL INFORMATION

1. REPORT OF THE EXTERNAL AUDITOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

2. ANNUAL FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127



in public education


Part A General Information




in public education


1. ELRC GENERAL INFORMATION

REGISTERED NAME: Education Labour Relations Council

REGISTRATION NUMBER: LR2/6/6/110

PHYSICAL ADDRESS: 261 West Avenue

Centurion

0046

POSTAL ADDRESS: Private Bag X126

Centurion

0046

TELEPHONE NUMBER/S: +27 12 663 7446

FAX NUMBER: +27 12 663 1601

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.elrc.org.za

EXTERNAL AUDITORS: Ngubane & Co. Chartered Accountants and Auditors

BANKERS: First National Bank




2. LIST OF ABBREVIATIONS/ACRONYMS

Adv Advocate

APP Annual Performance Plan

ATR Annual Training Report

BCEA Basic Conditions of Employment Act

CCMA Commission for Conciliation, Mediation and Arbitration

CFO Chief Financial Officer

COID Compensation for Injuries on Duty

CPTD Continuing Professional Teacher Development

CTLI Cape Teaching Leadership Institute

CTU-ATU Combined Trade Union – Autonomous Trade Union

DBE Department of Basic Education

DMS Dispute Management Services

DoE Department of Education

DPS Dispute Prevention Strategy

DPTT Dispute Prevention Task Team

DRP Dispute Resolution Practitioner

DSD Department of Social Development

EC Eastern Cape Province

ECD Early Childhood Development

ECEAC Eastern Cape Education Advisory Council

ECSECC Eastern Cape Socio-Economic Consultative Council

EEA Employment of Educators Act

EHW Employee Health and Wellness

ELRC Education Labour Relations Council

EMS Education Management System

ENE Estimates of National Expenditure

ETDP SETA Education Training and Development Practices Sector Education and Training Authority

EXCO Executive Committee

FAMSA Family and Marriage Society of South Africa

FAR Fixed Assets Register

FET Further Education and Training

FETC Further Education and Training Colleges

FPP Fraud Prevention Plan

FS Free State Province

FSCA Free State Collective Agreement



GET General Education and Training

GP Gauteng Province

HR Human Resources

ICT Information and Communications Technology

IFRS International Financial Reporting Standards

IIAL Incremental Introduction of African Languages

ILERA International Labour and Employment Relations Association

IQMS Integrated Quality Management System

IT Information Technology

KPI Key Performance Indicator

KZN KwaZulu-Natal Province

LDoE Limpopo Department of Education

LiEP Language in Education Policy

LOI Lesson Observation Instrument

LP Limpopo Province

LRA Labour Relations Act

LSEN Learners with Special Education Needs

LTSM Learning and Teaching Support Material

MP Mpumalanga Province

MSTA Maths, Science and Technology Academy

MTEF Medium-Term Expenditure Framework

Naptosa National Professional Teachers’ Organisation of South Africa

NAT National

NC Northern Cape Province

NECT National Education Collaboration Trust

NEHAWU National Education Health and Allied Workers’ Union

NEPA National Education Policy Act

NSSF National School Safety Framework

NW North West Province

OHS Occupational Health and Safety

OSD Occupation-Specific Dispensation

PAM Personnel Administrative Measures

PCTA Prevention, Care and Treatment Access

PELRC Provincial Education Labour Relations Council

PERSAL Personal and Salary Administration System




PEU Professional Educators Union

PFMA Public Finance Management Act

PGC Provincial General Council

PGP Professional Growth Plan

PILIR Policy on Incapacity Leave and Ill-Health Retirement

PMDS Performance Management Development System

PPN Post Provisioning Norms

PQLTC Provincial Quality of Learning and Teaching Campaign

PSCBC Public Service Coordinating Bargaining Council

PSLA Provincial Strategy on Learner Attainment

PTT Provincial Task Team

QC Quality Control

QLTC Quality Learning and Teaching Campaign

QMS Quality Management System

QTLP Quality Teaching and Learning Programme

RPL Recognition of Prior Learning

SACE South African Council for Educators

SADTU South African Democratic Teachers’ Union

SAOU Suid-Afrikaanse Onderwysersunie

SBD Standard Bidding Document

SCC Systems Change Control

SCM Supply Chain Management

SDL Skills Development Levy

SGB School Governing Body

SHE Safety, Health and Environment

SME Small and Medium-sized Entity

SOP Standard Operating Procedure

SPW Strategic Planning Workshop

STANCO Standing Committee

TASP Teacher Appreciation Support Programme

TVET Technical Vocational Education and Training

UIF Unemployment Insurance Fund

ULP Unfair Labour Practice

VPN Virtual Private Network

WC Western Cape Province

WSP Workplace Skills Plan



3. STRATEGIC OVERVIEW

3.1 VisionTo improve the quality of teaching and learning through labour peace

3.2 MissionQuality services for excellence in teaching

3.3 ValuesThe Education Labour Relations Council (ELRC) has adopted the following values:

• Professionalism: Promote behaviour that is generally accepted to be correct and proper

• Transparency: Ensure access to information by citizens

• Independence: The right to making informed decisions independently that minimise or avoid conflict of interest

• Accountability: Accepting responsibility for actions and decisions taken with allowance for corrective action and

penalty for wrongdoing

• Fairness and equity: Adjudication of grievances and disputes

• Social Responsibility: Respond to the social issues of the day

• Efficiency: Delivery of quality services economically

3.4 Strategic outcome-orientated goalsGoal 1: Research and monitoring, and evaluation activities provide an evidence base for improved policies and policy

implementation in basic education.

Goal 2: Equal importance is attached to proactive dispute prevention and dispute resolution.

Goal 3: Collective bargaining processes maximise the scope of the Parties’ shared interest.

Goal 4: Provide appropriate support and training for all involved in dispute resolution and collective bargaining.

Goal 5: Sound communication strategies, special initiatives and campaigns support and complement the core activities of the Council.

Goal 6: Strengthen social dialogue through supporting and participating in education initiatives such as the National Education Collaboration Trust (NECT).




4. LEGISLATIVE AND OTHER MANDATES

The ELRC operates in terms of the Labour Relations Act 66 of 1995 (as amended) from 01 April 2015.

Applicable Legislation

• Labour Relations Act (LRA) 66 of 1995, as amended

• Employment of Educators Act 76 of 1998, as amended

• Further Education and Training Colleges Amendment Act 3 of 2012

• Constitution of Republic of South Africa; Section 28(2) – Rights of the child



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6. FOREWORD BY THE CHAIRPERSON

It is with great pleasure that, on behalf of the Executive Committee (EXCO), I present the Education Labour Relations Council’s Annual Report for the financial year 1 April 2016 to 31 March 2017. The report demonstrates our commitment to quality education in the public education sector.

The governance structures of the Council demonstrated their commitment to fulfil the Council’s mandate to maintain labour peace in public education. This is evidenced by the improved performance in collective bargaining at provincial level, and the conclusion of key collective agreements during the period under review.

The Council attended the ABC West Coast Labour Management Institute in California in the 2016/17 financial year. The Institute provided members with the tools required to promote collaborative labour-management partnerships and ultimately improve educator networks.

The insights gained from this engagement with education leaders will aid the Council’s Executive structure to build stronger networks from the level of teachers’ unions and the Department of Basic Education (DBE) to public schools.

Evidence of this adopted spirit of affability has been seen in the facilitation provided by the Council in three provinces during the period under review. In the Eastern Cape, facilitation was provided for a dispute of mutual interest, as well as a dispute on Post Provisioning Norms (PPN). Facilitation was also provided for a misconduct dispute in the Western Cape, and a dispute on the implementation of the Personnel Administrative Measures (PAM) in Mpumalanga.

Relations between Parties requires further strengthening to ensure the optimum performance of Council, particularly in terms of set objectives for national collective bargaining and at the provincial level where performance is hindered by the non-attendance of Parties at scheduled meetings.

The achievements recorded for the period under review, however, demonstrate a firm commitment to address areas of underperformance for the attainment of quality education in public schools.

I extend my gratitude to the ELRC management and staff for the strides made during the 2016/17 financial period to achieve the objectives of the Council.

_________________Adv. L BonoChairperson, ELRC




7. ACCOUNTING OFFICER’S OVERVIEW

It gives me great pleasure to present the Annual Report and achievements of the Council for the financial year 1 April 2016 to 31 March 2017.

The Council recorded noteworthy achievements during the period under review in relation to its core operations of Dispute Management Services (DMS) and Collective Bargaining Services.

In line with our objective to provide efficient dispute resolution services, the Council continued to employ pre-emptive measures to deal with disputes; this includes the dispute prevention committees at provincial level, which continue to contribute to the reduction of disputes on alleged unfair dismissals as well as appointment and promotion disputes.

The Council realised its objective to play a proactive role in circumventing disputes and labour unrest, through facilitation and mediation. Facilitation was provided in five provinces, the most impactful being in the Eastern Cape in relation to the movement of additional educators. This

facilitation has propelled discussions related to PPN which could also benefit other provinces facing challenges with the implementation of PPN.

In giving effect to our intention to provide continuous training for Dispute Resolution Practitioners (DRPs), four training sessions were conducted during the period under review. The training of DRPs improved the efficiencies of the Council in terms of the quality of the outcomes, arbitration awards, settlement agreements, and rulings rendered.

The Council’s performance improved considerably during the period under review in terms of collective bargaining compared to performance in the 2015/16 financial year. This is particularly the case in relation to provincial collective bargaining.

There was a notable improvement in the performance of the Provincial Chambers compared to the 2015/16 financial period. Six provinces achieved 100% (Gauteng, Limpopo, Mpumalanga, Northern Cape, North West and Western Cape). The Free State achieved 92%, and only two provinces, the Eastern Cape and KwaZulu-Natal, performed below standard, recording 17% and 33% respectively.

In an effort to curb underperformance, the Council provided facilitation in the Eastern Cape to address labour unrest in the Province in terms of Post Provisioning Norms (PPN). As a result of this intervention, the performance of the Eastern Cape Chamber improved significantly during the fourth quarter of the 2016/17 financial year. It is envisaged that the performance of both Chambers will continue to improve in the 2017/18 financial period.

The performance of Collective Bargaining Services: National deteriorated in the period under review, compared to the 100% achieved in the 2015/16 financial year. Notwithstanding this decline in performance in relation to set objectives, momentous strides were made by Parties to the Council with the conclusion of four significant collective agreements during the period under review.

The four collective agreements are Collective Agreement 3 of 2016: ELRC Guidelines: Promotion Arbitrations; Collective Agreement 4 of 2016: Transfer of Serving Educators in Terms of Operational Requirements; Collective Agreement 5 of 2016: Levy Agreement; and Collective Agreement 6 of 2016: ELRC constitution.

Parties to the Council also demonstrated their unrelenting dedication to finalising the long-outstanding items on the agenda of the Council through the conclusion of Personnel Administrative Measures (PAM) workshops in eight provinces. This displays a commitment, not only to concluding agreements but also to ensuring the correct implementation of agreements through training and advocacy programmes.

The Council recognises that employees are the most valuable assets of any organisation. For this reason, staff wellness programmes were conducted during the period under review to enhance staff morale and encourage a healthy life-work balance. Furthermore, training was provided on Risk Management, Performance Management and Payroll, to expand



the knowledge base among employees and ensure improved efficiency in the different units of the organisation.

An Occupational Health and Safety (OHS) Committee was also established during the 2016/17 financial year to ensure a safe work environment.

Information and Communications Technology (ICT) is an integral support service of the Council as it serves to safeguard the ELRC’s business information and ensure that there are no interruptions in services.

ICT controls were strengthened during the period under review. This includes regular disaster recovery testing, server health checks, and the introduction of PASTEL evolution and VIP People (Employee Self Service). ICT policies were also approved to fulfil compliance requirements.

Risk Management is a process followed by management to identify efficient and effective ways to mitigate against risks. The Executive Committee assigned oversight of the ELRC’s risk management function to the Audit Committee. Reviews of the Council’s Risk Management were performed by the Council’s Operational Risk Management Committee, which reports to the Audit Committee through the Internal Auditor.

Quarterly meetings were convened to review and discuss the strategic and operational risks contained in the Council’s risk register. This helped to validate the identified risks and reflect on progress made to monitor these risks.

In line with King IV, the following were appropriately addressed during the reporting period:

• Financial reporting risk

• Internal financial controls

• Fraud risk as it relates to financial reporting

• IT risk as it relates to financial reporting

The Risk Management Committee Charter was also drafted during the period under review.

As the Accounting Officer of the ELRC, I am satisfied with the output and delivery of the core business services of the Council. This report demonstrates the commitment of the Council to the principles of transparency, accountability and service delivery.

_________________Ms NO FocaAccounting Officer, ELRC



in public education


Part B Performance Information



1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

Statement of Responsibility for Performance Information for the year ended 31 March 2017

In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indicators and targets as per the Strategic and Annual Performance Plan (APP) of the ELRC for the financial year ended 31 March 2017.

The performance information of the ELRC set out on page 24 to page 123 has been approved by the Executive Committee (Exco) of the Council.

_________________Ms NO FocaGeneral Secretary, ELRC




2. OVERVIEW OF ELRC’S PERFORMANCE

2.1 Service Delivery EnvironmentThe ELRC is a bargaining council composed of the DBE as the Employer and the admitted Teachers’ Unions.

It operates in the public education labour relations environment and, over the years, has managed to contribute towards labour peace in public education. To improve the delivery of services over the next three years, the Council will take steps to improve the efficiencies in dealing with matters of mutual interest by revisiting its mandate and providing strategic direction.

Identified factors that negatively affect the performance of the Council will be addressed with the objective of improving areas considered important in contributing to Outcome 1: “Improved quality of basic education”.

2.1.1 Dispute Management Services

2.1.1.1. Dispute PreventionThe objective of the Council in dispute prevention is to employ a proactive approach and intervene to resolve grievances before they develop into disputes. The Council provides training for Practitioners, both Panellists and Parties.

Another mechanism put in place by the Council to prevent disputes is the establishment of dispute prevention committees in all Provincial Chambers. The committees provide a forum for Parties to engage in all areas that are considered to be sites for potential disputes.

The committees contributed significantly to the reduction in grievances related to promotional posts at the provincial level. The work of the Dispute Prevention Task Teams (DPTTs) also focused on the need for a comprehensive workshop on the Discipline of Educators in KwaZulu-Natal and Gauteng.

2.1.1.2 Facilitation and InterventionThe Council was involved in facilitation and mediation processes for a dispute of mutual interest in the Northern Cape, which ultimately led to an agreement being entered into between the Provincial Department of Education and the union.

The Council provided facilitation in the Eastern Cape on 5, 12 and 20 December 2016 for the PPN Management process in the Province. The envisaged outcome is to ensure a consolidated Management Plan, with the inputs of all stakeholders, which relates to the identification and movement of additional educators.

The Council concluded the mediation processes of a dispute on the implementation of the Personnel Administrative Measures (PAM) in Mpumalanga, while the dispute on the translation of Therapists and Psychologists in Gauteng, in terms of Collective Agreement No. 1 of 2008 (Framework for the establishment of an Occupation-Specific Dispensation (OSD) for educators in public education), is still continuing.

The Council further facilitated on a dispute in the Western Cape in which 123 educators were charged with misconduct for alleged involvement in a boycott of the systemic evaluations between October and December 2016.

2.1.1.3 Dispute Resolution

Special Disputes where a child is a victim

The Council observed that a considerable number of disputes referred to it relate to learners as victims or witnesses. Furthermore, the Council detected that there is a shortage of skilled Panellists who can handle these special cases.



The Council continues to recruit interpreters, commissioners and intermediaries in order to overcome delays and postponement issues associated with the unavailability of such persons whenever they are requested. The role of such persons is critical in ensuring that the rights of the child are protected in disputes where the child is attending arbitration processes, either as a victim or witness. The Council will again issue a formal advertisement for interpreters, intermediaries and commissioners in the first quarter of the 2017/18 financial year.

The Council continues to ensure that appropriate venues are booked for special hearings involving a child, e.g., the Magistrate’s Court, Children’s Court, or Teddy Bear Clinic (Johannesburg), and the Department of Social Development (DSD) in the Free State and Northern Cape. The Council also formed partnerships with Uviwe Child and Youth Services in the Eastern Cape, and the Family and Marriage Society of South Africa (FAMSA), as well as Engo Family Care in the Free State. The Council has managed to secure a venue in Port Elizabeth as a training facility for one of the Commissioners who has agreed to allow the use of the venue at a reasonable rate as and when special disputes are referred and set down there.

The Council also ensures that intermediaries are appointed to protect the rights of the child. As stipulated in Section 28 of the RSA Constitution, “The right of the child is of paramount importance in all matters concerning the child”.

Appointments and promotions

The Council noticed that the majority of disputes referred to the ELRC are issues of unfair labour practices (ULPs) relating to promotions and appointments. Considering that there has been a concluded collective agreement dealing with guidelines for promotion and appointments, the Council anticipates a speedy resolution to these kinds of disputes.

Monitoring the implementation of Collective Agreements and enforcement

The Council, through its Provincial Chambers, continued to ensure that the implementation of Collective Agreements is monitored and, in instances where implementation is not underway, the provisions of the Council’s constitution are invoked to ensure enforcement.

Proactive measures in place to deal with disputes:

• The dispute prevention committees in all Provincial Chambers assist with the analysis of statistics on the above

disputes to ensure that these issues are addressed timeously and to identify training needs where necessary.

• The Council trained all Provinces on the guidelines for promotion and appointments as well as the transfer of

educators on the basis of operational requirements to Provincial Chambers and will continue to train the DRPs.

• The Council has amended its constitution with effect from 23 August 2016 in order to align it to the Commission

for Conciliation, Mediation and Arbitration (CCMA) Rules and the LRA, and it was subsequently approved by the

Registrar of Labour Relations of the Department of Labour.

2.1.2 Collective Bargaining Services

2.1.2.1 Challenges emanating from the implementation of the current PPNThe consultation process on PPN at the Provincial Chambers often poses challenges which result in disputes because the model used by the Employer does not cater for the material conditions. The Council made a decision that the PPN should be a standing agenda item in all bargaining meetings where the Employer would provide progress reports. The item has been added to the management plan of the Council for the 2016/17 financial year. Notwithstanding the fact that PPN was included in the 2016/17 Management Plan, there was no progress on the item. The Employer could not provide progress on the PPN research report to Council and Parties could also not agree on the date to convene the Education Indaba, where the issue of the Revised PPN would be discussed. The Employer’s proposed date for the Education Indaba is 20 June 2017.




2.1.2.2 Reduction in the pool of temporary educators

Inconsistencies in the reduction of temporary educators resulted in an impasse between the Employer and employee Parties at the provincial level.

To address the challenges in the appointment of temporary educators in education, and to give effect to amendments in the Labour Relations Amendment Act 6 of 2014, the Council’s Legal Sub-Committee drafted a collective agreement on the appointment of temporary educators, which is aligned to the Act. The Draft Collective Agreement is currently serving on the agenda of bargaining for finalisation and signing during the 2017/18 financial year.

2.1.2.3 Incentives for EducatorsThere are inconsistencies in the implementation of the current policy on incentives as it is not the outcome of the negotiation process. The Council continues to monitor the implementation of the policy through reports tabled by the Employer. In addition to the reports presented by the Employer, the Council also monitored the implementation of the policy through reports submitted by Provincial Chambers on a quarterly basis. The Parties have agreed that the Employer would request the Minister of Basic Education to review the policy.

2.1.2.4 Training and Advocacy on Revised PAMOutdated parts of pieces of legislation, policies and/or Collective Agreements within the PAM have resulted in the incorrect implementation of certain provisions of the current Collective Agreements, thereby contributing to a number of disputes referred to the Council.

As a way of addressing this, the Council revised the PAM, which was gazetted by the Minister of Basic Education in February 2016. The Council successfully conducted training and advocacy on the Revised PAM in 2016/17 financial year in eight provinces. Mpumalanga is the only remaining province which postponed their training and advocacy to the 2017/18 financial year. The Council, through the PAM Task Team, provided answers to frequently asked questions on the Revised PAM after the training and advocacy were conducted in eight provinces.

2.1.2.5 Quality Management System (QMS)As a way of providing a standardised framework for employee performance for educators, the Council concluded a QMS Collective Agreement in the 2015/16 financial year. However, training and advocacy on the agreement could not be conducted as planned during the period under review, as the Collective Agreement still has to be signed by all Parties.

2.1.2.6 ResearchThe Council concluded research on the Conditions of Service for the Institutionalisation of Grade R Practitioners in the 2015/16 financial year. The Council could not finalise discussions on the research during the period under review. The Draft Collective Agreement was tabled in the bargaining meeting during the period under review. However, Parties indicated that they had to seek a mandate to append their signatures to the agreement. It is envisaged that this objective will be achieved in the 2017/18 financial year.

2.2 Organisational Environment

2.2.1 Funding ModelThe funding model of the Council poses a challenge in that income is generated through contributions by the Employer and deductions from educators. The Council has successfully negotiated for a fixed amount levy increase, effective for a period of five years. This will provide temporary financial relief through a static and fixed flow of secure income in an environment of increasing costs due to inflation.



2.2.2 Human CapitalThe Council developed a Recruitment and Retention Strategy through the Human Resources Executive Sub-Committee in order to address the staff turnover rates. These strategies, coupled with succession plans, are geared to enhance our ability to attract and retain competent, well-motivated and committed people who will contribute to the attainment of our strategic outcome-orientated goals.

The Recruitment and Retention Strategy has also yielded positive results for the organisation. Employees are now receiving long-service awards and job satisfaction surveys, which are beneficial to the organisation.

Human Resources policies were amended to address identified gaps in ensuring that the organisation operates smoothly. The following policies were amended:

• Performance Management Policy

• Recruitment and Selection Policy

• Disciplinary Policy and Procedure

• Training and Development

• Leave Management Policy

• Code of Conduct and Ethics

2.3 Key Policy Developments and Legislative Changes

2.3.1 Amendments to the FETC Act 16 of 2006 With the promulgation of the FETC Amendment Acts 3 of 2012 and 1 of 2013, the Council had to amend its scope to give effect to the agreements and to include Technical Vocational Education and Training (TVET) and Further Education and Training (FET) in relation to its bargaining and disputes functions.

2.3.2 Revised ELRC constitution The ELRC was established in terms of the LRA and is designated as a bargaining council in the public sector of the public service by the Public Service Coordinating Bargaining Council (PSCBC).

The Council functions in terms of a constitution that is collectively agreed to by Parties. Its funding is through a levy charged to educators and a contribution by their employer, as agreed to by the parties.

The Council has aligned its constitution to the CCMA Rules, as well as the LRA, to improve its efficiencies in resolving disputes.




2.4 Strategic Outcome-Oriented Goals

Strategic Outcome-Orientated Goals Progress

Goal 1Research, monitoring and evaluation activities provide an evidence base for improved policies and policy implementation in basic education.

Not AchievedThe Council concluded research on the Conditions of Service for the Institutionalisation of Grade R Practitioners in the 2015/16 financial year. The Council could not finalise discussions on the research during the period under review. The Draft Collective Agreement was tabled in the bargaining meeting for approval. However, Parties indicated that they had to seek a mandate to append their signatures to the agreement. It is envisaged that this objective will be achieved in the 2017/18 financial year.

Goal 2Equal importance is attached to proactive dispute prevention and dispute resolution.

AchievedThe Council was involved in facilitation and mediation processes of a dispute of mutual interest in the Northern Cape, which ultimately led to an agreement being entered into between the Provincial Department of Education and the union. The Council provided facilitation in the Eastern Cape on 5, 12 and 20 December 2016 for the PPN Management process in the Province. The envisaged outcome is to ensure a consolidated Management Plan, with the inputs of all stakeholders, which relates to the identification and movement of additional educators. The Council concluded the mediation processes of a dispute on the implementation of PAM in Mpumalanga, while the dispute on the translation of Therapists and Psychologists in Gauteng, in terms of Collective Agreement No. 1 of 2008 (Framework for the establishment of an OSD for educators in public education), is still continuing. The Council further facilitated on a dispute in the Western Cape in which 123 educators were charged with misconduct for alleged involvement in the boycott of the systemic evaluations between October and December 2016.

Goal 3Collective bargaining processes maximise the scope of the Parties’ shared interest.

AchievedThe Council conducted training and advocacy on the Revised PAM in eight provinces in the 2016/17 financial year. Mpumalanga postponed their training and advocacy, and the Council is awaiting new dates for training in the 2017/18 financial year. The PAM Task Team dealt with frequently asked questions emanating from the training and advocacy in the eight provinces. The task team still has to discuss and recommend the process of amending the PAM going forward.

Goal 4Provide appropriate support and training for all involved in dispute resolution and collective bargaining.

AchievedThe ELRC organised and conducted four professional development and training sessions for Panellists in the 2016/17 financial year. The training focused mainly on the law of evidence where a learner is either a victim or witness, as well as on the transfer of educators as a result of operational requirements and guidelines on promotion disputes.



Strategic Outcome-Orientated Goals Progress

Goal 5Sound communication strategies support and complement the core activities of the Council.

AchievedThe Council implemented a marketing strategy during the period under review that was focused on creating brand awareness among educators in public education.The following activities were undertaken:Exhibition at national and provincial events• Teacher Appreciation Support Programme (TASP) June 16 celebration held on 15 June 2016 • African Education Week on 29 and 30 June 2016• The HR Issue in Schools Symposium 2016 on 20 July 2016 • South African Democratic Teachers’ Union (SADTU) Provincial General Council (PGC) on 23 and 25

September 2016• Professional Educators Union (PEU) Congress on 7 October 2016• National Professional Teachers’ Organisation of South Africa (Naptosa) Congress on 26 and 27

October 2016• SADTU’s Novice Day in the Western Cape on 28 January and 4 March 2017• SADTU’s Provincial Conference in East London on 23 and 24 March 2017

Collaborative marketing • TASP World Teachers Day celebration held on 5 October 2016• Launch of Zibuza.net on 5 October 2016• NATU published an ELRC advertorial in their 2017 diary

Marketing of Council services and developments• In the June and September 2016 issue of the Labour Bulletin and New Negotiator

Marketing material distributed • At SADTU’s TVET Colloquium on 3 and 4 June 2016

Advertising on social media The following were posted on social media platforms:• ELRC vacancies• Notification of the PAM workshops• World Teachers Day Celebrations• Labour Bulletin and New Negotiator articles• 16 Days of Activism Against Women and Child Abuse commemorations• World Aids Day Commemorations • Messages of Support to the Class of 2016

Goal 6Strengthen social dialogue through supporting and participating in education initiatives, such as the National Education Collaboration Trust (NECT).

AchievedThe Council is one of the key stakeholders of the TASP, which was established in 2015 and seeks to uplift the teaching profession.The ELRC participated in the World Teachers Day events on 5 October 2016.




3. PERFORMANCE INFORMATION BY PROGRAMME

3.1 Programme 1: Collective Bargaining Services – National

Purpose

The purpose of Programme 1 is to contribute to the Council’s vision of a strengthened social contract between government, teachers’ unions and civil society that helps to create a conducive environment for improved quality of teaching and learning by promoting collective bargaining at national and provincial levels so as to ensure the development of effective policies for quality public education in a non-disruptive environment for teaching and learning.

Sub-Programmes

• Collective Bargaining (Provincial)

• Research Services

• Dispute Prevention Support Services

Strategic Objectives

• To facilitate bargaining on identified matters of mutual interest in public education.

• To facilitate consultation and information on matters of policy in line with the National Education Policy Act (NEPA).

• To administer research programmes on identified issues for research on evidence-based teacher welfare and national

development.

• To facilitate dispute prevention support services through providing effective administrative functions to shop stewards.

• To provide training and advocacy on the implementation of collective agreements and policies.



Key Performance Indicators (KPIs), Planned Targets and Actual Achievements

Collective Bargaining Services: National

Programme Performance

Indicator

Actual Achievement

2015/16

Planned Target2016/17

Actual Achievement

2016/17

Deviation from planned

target to Actual Achievement for 2016/17

Comment on deviations

Status

Consultation, Implementation and Monitoring of Collective Agreements and Policies

Schedule bargaining and governance meetings within 14 days from date of agreement

Achieved24 meetings

Agreed matters of mutual interest in public education concluded successfully in bargaining meetings(Scheduled bargaining and governance meetings)

AchievedConclusion of the following collective agreements: Collective Agreement 1 of 2016: Vote WeightsCollective Agreement 2 of 2016: Amendment to clause 9.3.1 of ELRC constitutionCollective Agreement 3 of 2016: Guidelines: Promotion ArbitrationCollective Agreement 4 of 2016: Transfer of Serving Educators in Terms of Operational Requirements Collective Agreement 5 of 2016: Levy AgreementCollective Agreement 6 of 2016: ELRC constitutionPAM training conducted in eight provinces.Workshop on 2016 signed collective agreements conducted in provinces.

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


To conduct training and advocacy on the Revised PAM

n/a Agreed matters of mutual interest in public education concluded successfully in bargaining meetings(Training and advocacy on Revised PAM)

Not Achieved Training session (1)

Mpumalanga did not have training and advocacy on the Revised PAM.

Appointment of Foreign EducatorsTo convene a joint workshop on the appointment of foreign educators

n/a Agreed matters of mutual interest in public education concluded successfully in bargaining meetings(Appointment of foreign educators)

Not Achieved Workshop (1) No joint workshop on the appointment of foreign educators was held due to the unavailability of the relevant Departments.

Amendments to the ELRCconstitutionLegal Sub-Committee to table recommendations to Council

n/a Agreed matters of mutual interest in public education concluded successfully in bargaining meetings(Amendments to the ELRCconstitution)

AchievedCollective Agreement 6 of 2016 “constitution” was adopted at the bargaining meeting held on 23 August 2016

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Education Management System (EMS) for Office-Based EducatorsTo table recommendations on job descriptions (Circuit Managers 1, 2 and 3) to Council

n/a Agreed matters of mutual interest in public education concluded successfully in bargaining meetings(EMS for Office-Based Educators)

Not Achieved Collective Agreement (1)

The work was allocated to the employer party, specifically Gauteng Province, and other provinces could not provide information for the work to be completed. A draft collective agreement was tabled in bargaining meeting of 23 August 2016, but not signed. Subsequently, the collective agreement was not signed due to unavailability of Parties.

Review of Collective AgreementsTo conclude Collective Agreement on Transfer of Serving Educators in Terms of Operational Requirements

n/a Agreed matters of mutual interest in public education concluded successfully in bargaining meetings(Review of Collective Agreements)

AchievedCollective Agreement 4 of 2016 Transfer of Serving Educators in Terms of Operational Requirements was adopted in the bargaining meeting held on 23 August 2016

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Appointment of Temporary Educators Legal Sub-Committee to finalise draft Collective Agreement on Appointment of Temporary Educators

n/a Agreed matters of mutual interest in public education concluded successfully in bargaining meetings.(Collective Agreement on Appointment of Temporary Educators)


The draft Collective Agreement is ready to be placed on the agenda for bargaining in the 2017/18 financial year.The collective agreement was not concluded as no bargaining meeting was convened in the third and fourth quarters.

Levy AgreementTo conclude a collective agreement on levy increases

n/a Agreed matters of mutual interest in public education concluded successfully in bargaining meetings(Levy Agreement)

AchievedCollective Agreement 5 of 2016 Levy Agreement was adopted at the bargaining meeting held on 23 August 2016

None

Revision of the Post Provisioning ModelA consolidated report on the consultation process for post provisioning is available

n/a Monitor the implementation of the Revised PAM

Not Achieved Report (1) Parties could not arrive at common dates for convening consultative meetings.

Incentives for Educators To review the Incentive Policy

n/a Council to draft proposal on review of policy

AchievedConsolidated report tabled by the Secretariat at the bargaining meeting held on 18 and 19 May 2016

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Consultation and information sharing To convene a national budget workshop

n/a Budget Workshop for Provincial and National DoEs (DBE in nine provinces)

Not Achieved National Budget Workshop (1)

Parties could not agree on the date to convene the workshop and, subsequently, no workshop was convened due to the unavailability of Parties.

Management Plans Annually table the management plans for approval for the next bargaining cycle

AchievedManagement Plan was tabled and approved in the bargaining meeting on 22 October 2015

Table Management Plans annually

AchievedThe Management Plan for 2016/17 was adopted at the bargaining meeting held on 18 and 19 May 2016

None

Administer resources allocated to approved research programmesMonitoring the implementation of research programme recommendations

AchievedThree Projects:• PAM –

Advocacy and Training

• Early Childhood Development (ECD)

• Job Evaluation

Administer resources allocated to approved research programmes


Research recommendations on conditions of work for ECD practitioners are still to be discussed in bargaining meeting.

Dispute prevention To facilitate dispute prevention support services through providing effective administrative functions to shop stewards

n/a Minimising the potential for disputes to be referred to national office by provinces

AchievedProvincial Chambers held quarterly meetings, in which reports were presented on identified objectives on a quarterly basis

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Implementation of Collective Agreements/PoliciesTraining and advocacy on the implementation of collective agreements and policies

n/a Training and advocacy conducted on collective agreements and policies

AchievedWorkshops held in all nine Provincial Chambers on the following dates:Mpumalanga – 14 November 2016Limpopo – 15 November 2016Northern Cape - 21 November 2016Free State – 22 November 2016Gauteng – 23 November 2016KwaZulu-Natal – 29 November 2016Western Cape – 1 December 2016North West – 10 February 2017

None



Performance Overview of Collective Bargaining Services: National for the 2016/17 Financial Year)

The Council commenced its activities for the 2016/17 financial year with the rollout of training and advocacy on the Revised PAM. Workshops were conducted in eight of the nine provinces. PAM training and advocacy in Mpumalanga was postponed to later in the 2017/18 financial year.

The Council concluded the following collective agreements:

• Collective Agreement No. 1 of 2016: Vote Weights

• Collective Agreement No. 2 of 2016: Amendment to Clause 9.3.1 of ELRC constitution

• Collective Agreement No. 3 of 2016: ELRC Guidelines: Promotion Arbitration

• Collective Agreement No. 4 of 2016: Transfer of Serving Educators in Terms of Operational Requirements

• Collective Agreement No. 5 of 2016: Levy Agreement

• Collective Agreement No. 6 of 2016: ELRC Constitution

Training in 2016 on the signed Collective Agreements was conducted in eight provinces as follows:

• Mpumalanga on 14 November 2016

• Limpopo on 15 November 2016

• Northern Cape on 21 November 2016

• Free State on 22 November 2016

• Gauteng on 23 November 2016

• KwaZulu-Natal on 29 November 2016

• Western Cape on 1 December 2016

• North West on 10 February 2017

The Eastern Cape Province will be conducting its workshop during the first quarter of the 2017/18 financial year.

The Annual General Meeting and the grand opening of the new ELRC building were held on 24 August 2016. The Deputy Minister of Labour was the guest speaker at the event. The Annual General Meeting nominated Adv L Bono as the Independent Chairperson, and Mr S Tshabalala, Mr M Cele, Mr D Lerm and Adv JK Moshotle were nominated as Deputy Chairpersons. The Audit Committee Members were also appointed, and the formal induction workshop was held on 22 September 2016.

Eight members of the EXCO attended the ABC West Coast Labour Management Institute in California on 19 and 20 October 2016. The theme of the training was: “Building Labour Management Communication Networks”. The Institute sought to bring together experts, practitioners and researchers in the field of data and partnership building to give stakeholders the tools needed to promote collaborative labour-management partnerships that improve educator networks. The ABCFT is the exclusive bargaining agent for the teachers of the ABC Unified School District in the United States. The ABC Federation of Teachers played an instrumental role in securing funding for the ELRC Prevention, Care and Treatment Access (PCTA) Project in 2008. The Council’s participation in the event was with the view to provide tools to establish and sustain sound rapport between unions and school administration to serve the greater cause of education in our country.

A Chief Negotiators meeting was convened on 6 March 2017 to finalise the meeting schedule for a three-month period (March to May 2017) in an attempt to address the issue of non-availability of parties at meetings. The EXCO workshop was convened on 22 March 2017, where all the outstanding policies of the ELRC were discussed and subsequently adopted in the Special EXCO meeting held on the same day.




Strategy to overcome areas of underperformance

All the objectives that were not achieved will be placed on the agenda for bargaining in the new financial year.

The Council will, through the Chief Negotiator’s meetings, solicit concurrence on meeting dates for each quarter.

Changes to planned targets

No changes were made to the planned targets.

Linking performance to budget

2016/17

Programme Name BudgetActual

Expenditure(Over)/Under Expenditure

Collective Bargaining Services R’000 R’000 R’000

National R14,288 R11,465 R2,823

Dispute Prevention Support Services

R8,000 R2,519 R5,481

Governance Support Services R2,148 R1,055 R1,093

Research Services R2,150 R978 R1,172

PAM R1,214 R921 R293

Total R27,800 R22,079 R10,861



3.1.1 Programme 1: Collective Bargaining – Provincial

Purpose

The purpose of the Provincial Chambers is to promote collective bargaining at the provincial level to ensure the development of effective policies for quality public education in a non-disruptive environment for teaching and learning.

3.1.1.1 Eastern Cape

KPIs, Planned Targets and Actual Achievements

Collective Bargaining Services: Eastern Cape


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17


target to Actual Achievement for

2016/17


Status


Post ProvisioningA report on the consultation process for post provisioning is available

Achieved

Four meetings were convened during the period under review, in which reports on PPN were presented

Meeting dates:27 August 201521 September 201529 September 201522 October 2015

Reports (4) Not Achieved

Two meetings were convened during the period under review, in which reports on PPN were presented and adopted.

Meeting dates:18 August 201622 September 2016

Reports (2) Two meetings were not held as per the planned targets.No meetings were convened by the Employer on the distribution of posts to schools.

Employee WellnessMonitor the introduction and implementation of employee wellness activities

Not Achieved

Only one meeting took place on 11 May 2015.


Two meetings held during the period under review to report on the implementation of employee wellness activities. Reports were presented and adopted.

Meeting dates:14 November 20162 March 2017

Reports (2) Two meetings scheduled for the first and second quarters were not held as per the planned targets, due to the absence of the Employer representatives.






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Teacher DevelopmentMonitoring reports on the provision of Teacher Development programmes

Achieved

Two meetings were convened during the period under review on Teacher Development.

Meeting dates:14 May 201529 October 2015


Three meetings were convened and held during the period under review to receive reports on Teacher Development programmes. Reports were presented and adopted.

Meeting dates:29 October 201610 November 201607 March 2017

Report (1) One meeting was scheduled, but was not held on 7 September 2016, due to the absence of the Employer representatives.

Dispute Prevention Monitoring reports on the categories and status of the grievances, misconduct and disputes lodged

Not Achieved

Only three meetings took place on:21 May 201514 September 201528 October 2015


Only one meeting was convened and sat in the fourth quarter during the period under review. A report was presented and adopted.

Meeting date:9 March 2017

Reports (3) Three meetings were not held during the first, second and third quarters of the 2016/17 financial year. The Employer was dealing with the challenge of representation of members in the task teams.





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Rural Incentives for EducatorsMonitoring reports on the implementation of incentives for educators are available

Achieved

Four meetings were convened during the period under review on incentives for educators

Meeting dates:11 May 201510 September 201527 October 2015 05 February 2016

Meetings (4) Achieved

Four meetings were convened during the period under review on incentives for educators, in which reports were presented and adopted.

Meeting dates:26 April 20166 September 20164 November 20169 March 2017

None

Incremental Introduction of African Languages (IIAL) in Language in Education Policy (LiEP) ImplementationMonitoring reports on the implementation LiEP

n/a Reports (4) Not Achieved

Two meetings were convened during the period under review, in which reports were presented and adopted.

Meeting dates:7 September 201610 March 2017

Reports (2) Two meetings were not held during the first and third quarters.The Department was still in the process of finalising their internal challenges on the representatives to Task Teams.

Performance Overview of the Eastern Cape Chamber for the 2016/17 Financial Year

Facilitation on the post provisioning for 2017 was undertaken by the ELRC, and the following meetings were held:

• 16 January 2017

• 9 February 2017

• 8 March 2016

• 27 March 2017

The Provincial Task Team (PTT) on the Monitoring of PPN 2017 held various meetings to monitor the processes, with special attention given to the appeals made by schools and on the recommendations made by the District Task Teams. The following meetings were held:




• 5-6 January 2017

• 12 January 2017

• 18 January 2017

• 2 February 2017

• 27 February 2017

• 6-7 March 2017

• 16-17 March 2017

Task Team meetings took place to report on the overview of their activities for the year and to draw up a programme for the 2017/18 financial year.

The following Task Teams meetings were held:

• Dispute Prevention on 2 March 2017

• Employee Health and Wellness (EHW) on 2 March 2017

• Teacher Development on 7 March 2017

• Rural Incentives on 9 and 29 March 2017

• Language Policy Implementation on 10 March 2017

A joint session of the Eastern Cape Education Advisory Council (ECEAC), together with the Quality Learning and Teaching Campaign (QLTC), was convened on 3 February 2017 by the new Superintendent-General to introduce himself and also to give his vision for the Province.

Another joint session sat on 6 March 2017 to receive reports on the programmes taking place in the Province with regard to the Rationalisation of Schools and also on the envisaged programmes for Teacher Development, Management and Leadership.

A Standing Committee (STANCO) meeting was convened for 16 March 2017 to prepare for the Chamber meeting of 30 March 2017. The STANCO meeting also received reports from the Task Team meetings, and monthly and quarterly reports on the performance of the Chamber from the Provincial Manager, together with financial reports.

Reports on the following projects for monitoring purposes were received:

• QLTC

• Eastern Cape Socio-Economic Consultative Council (ECSECC) on the review of the tool and criteria for the payment

of Rural Incentives

The following reports were not available for discussion at the Chamber meeting:

• Policy on Incapacity Leave and Ill-Health Retirement (PILIR)

• Displaced Educators

• Infrastructure Plans

• Learning and Teaching Support Materials (LTSMs)




STANCO noted that there are issues that pose a threat to the Chamber, like the non-attendance of the Employer in the Teacher Development Task Team.

The matter was reported to the delegation leader of the Chamber and the Superintendent-General.


No changes were made to planned targets.


2016/17



R’000 R’000 R’000


R438 R370 R68

Total R438 R370 R68




3.1.1.2 Free State


Collective Bargaining Services: Free State


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Reports on recruitment/filling of posts in terms of the Free State Collective Agreement (FSCA) 1 of 2012 are available

n/a Reports (4) Achieved Four meetings were convened on posts filled, in which reports were presented and adopted.

Meeting dates: 9 June 201612 September 20169 November 20163 March 2017

None

Monitor the training of School Governing Bodies (SGBs) on FSCA 1 of 2012

n/a Reports (4) Achieved

Four meetings were convened on the training of SGBs, in which reports were presented and adopted.

Meeting dates: 9 June 201612 September 20169 November 2016 3 March 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Monitor the implementation of 37% in lieu of benefits for educators employed for a period less than six months


Four meetings were convened on educators accessing 37%, in which reports were presented and adopted.

Meeting dates: 9 June 201612 September 2016 9 November 2016 3 March 2017

None

Monitor the implementation of FSCA 1 of 2009


Four meetings were convened on the conversion of educators, in which reports were presented and adopted.

Meeting dates:9 June 201612 September 20169 November 2016 3 March 2017

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Monitor the implementation of the Integrated Quality Management System (IQMS) and Performance Management Development System (PMDS)


Four meetings were convened on performance results in which reports were presented and adopted.

Meeting dates: 9 June 201612 September 20169 November 20163 March 2017

None

Monitor the implementation of the Incentives Policy for educators

Achieved

Reports on incentives were tabled.

Meeting dates:11 August 201523 September 20158 December 20154 March 2016

Reports (4) AchievedFour meetings were convened on incentives for educators in which reports were presented and adopted.

Meeting dates: 9 June 2016 12 September 2016 9 November 20163 March 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Monitoring reports on consultation for post provisioning

Achieved

Reports on PPN were presented.

Meeting dates:31 July 201523 Sept 20158 Dec 20154 Mar 2016

Reports (4) Achieved

Four meetings were convened for consultation on the budget and distribution of posts for 2017 in which reports on placement were presented and adopted.

Meeting dates: 9 June 2016 18 August 201621 September 2016 3 March 2017

None

Monitoring reports on Teacher Development programmes

Achieved

Reports on Teacher Development presented.

Meeting dates: 5 June 20154 March 2016


Four meetings were convened on the training of teachers in which reports were presented and adopted.

Meeting dates:9 June 2016 18 August 201621 September 2016 3 March 2017

None

Monitoring reports on infrastructural development in schools and offices

n/a Reports (2) Not Achieved

One meeting was convened on the progress made on infrastructure in which a report was presented and adopted.

Report (1) The Free State Education Department has no authority to subject the matter for discussions as it resides with Public Works.






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Monitor implementation of equity targets on the filling of posts


Four meetings were convened on targets in filled posts in which reports were presented and adopted. Meeting dates: 9 June 201618 August 2016 21 September 2016 3 March 2017

None

Monitor implementation of the Provincial Strategy on Learner Attainment (PSLA), Curriculum and Examination


Four meetings were convened on PSLA progress and the new plan for 2017 in which reports were presented and adopted.

Meeting dates: 9 June 201618 August 2016 21 September 2016 3 March 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Monitor the implementation of EHW activities

Achieved

Four meetings were convened during the period under review on employee wellness.

Meeting dates:5 June 201523 September 20158 December 20154 March 2016


Four meetings were convened on EHW activities in which reports were presented and adopted.


None

Monitoring reports on the categories and status of grievances and disputes lodged

Achieved

Four meetings were convened during the period under review on dispute prevention

Meeting dates:12 June 201517 August 20159 September 201529 February 2016


Four meetings were convened on DPTT in which reports were presented and adopted.


None

Performance Overview of the Free State Chamber for the 2016/17 Financial Year

The Free State Chamber successfully performed in accordance with the 2016/17 Annual Performance Plan (APP) in the period under review. This has been realised as a result of Parties remaining committed, productive and effective in ensuring adequate implementation of the programme performance indicators, as stated below.

Recruitment and filling of posts in terms of FSCA 1 of 2012

The summarised report showed progress recorded in terms of vacancy lists of 2015 and 2016 as follows:

• Vacancy list 1 of 2015: 590 posts advertised and 467 filled.






• Vacancy list 2 of 2016: 662 (principal, deputy principal and HOD) posts advertised and 369 filled.

• Head Office: 19 (office-based educator) posts advertised and 15 filled.

Implementation of the 37% in lieu of benefits

The reports on the implementation of 37% in lieu of benefits for educators employed for a period less than six months showed that 743 educators received 37% service benefits in the first quarter, 96 educators in the second quarter, 244 during the third quarter, and 21 educators as at 28 February 2017.

Conversion of temporary educators

Reports presented during the second quarter stated that 868 temporary educators were appointed against substantive vacant posts and 694 qualified for conversion. As at the end of February 2017, a total of 718 temporary educators appointed against substantive posts qualified for conversion.

Integrated Quality Management System (IQMS) implementation

The Systems Change Control (SCC) for payment of 1% salary progression was registered to prepare the system implementation in July 2016. The Personal and Salary Administration System (PERSAL) report provided an overview on 2016 pay progression in terms of 17 771 educators who qualified for 1% pay progression. Post-summative evaluation visits to schools were undertaken on a pilot basis with a view to monitoring and verifying the availability of IQMS documentation as evidence in relation to the 2016 IQMS outcomes.

The following findings and challenges were noted:

• Most of the schools moderated complied with the processes of summative evaluation.

• Relevant documents were used to conduct summative evaluations in all the schools monitored.

• Lesson observations were conducted, but no appropriate comments on some instruments to support ratings

assigned to educators in some schools were made.

• Some of the educators did not indicate strengths and recommendations for development in the Lesson Observation

Instrument (LOI) and did not record raw and final scores in the LOI.

• Three schools could not present the required information of Summative Evaluation records submitted to the district,

and some of the schools did not complete educator’s Professional Growth Plans (PGPs).

Incentives for Educators

On the implementation of incentives, it was reported that the number of beneficiaries may vary from time to time due to new appointments, terminations and transfers as a result of the closure of non-viable farm schools. The initial number of beneficiaries was 731, which increased to 771 with the implementation of the provisions of PAM. The current number of beneficiaries of incentives is 661 while 100 do not receive benefits as a result of transfers, termination and disqualification due to unsatisfactory IQMS performance scores.

Post Provisioning

The post provisioning consultation on budget allocation and distribution of posts was convened and concluded over two sessions. Parties accepted presentations for 2017/18. In terms of monitoring the process, reports on the identification and placement of educators were presented. A Provincial summary on excess educators highlighted a total of 1 062 excess educators in the system, out of which 499 have been placed, and 563 have not yet been placed due to reasons ranging from curriculum, distance, lack of vacancies, under and unqualified educators, and those still awaiting SGBs.

In addition to the above, 74 Funza Lushaka bursary holders, 169 Post Level 1-3, and 816 educators on substantive posts were placed.



Teacher Development

A detailed report on training provided was presented stating that teacher developmental needs were compiled from the IQMS, National and Provincial priorities. The training had been provided to educators in the Foundation, Intermediate, Senior and FET Phases.

Equity Targets

The implementation of targets in filled posts highlighted some of the following challenges:

• Targets would not always be adhered to due to curriculum needs and the expertise of teachers.

• In isolated cases, when posts are filled, issues of gender are not considered.

• Female teachers are in the majority at post Level 1, especially in primary schools, but male counterparts at the school

management level are in the majority.

• In secondary schools, fewer female teachers are in senior-level positions, especially when principals are appointed.

Provincial Strategy on Learner Attainment (PSLA)

The implementation of the PSLA highlighted that the strategy is used to realise performance targets in terms of Tracking Learners’ Performance, Direct Learner Support, High-Quality Resources, and Teacher Capacity and Practice. A new plan on PSLA for ECD and General Education and Training (GET) Curriculum Management Directorate was also presented for implementation in 2017.

Employee Health and Wellness (EHW)

The EHW report highlighting activities that took place in terms of its four pillars was presented together with the relevant statistics.

Dispute Prevention Task Team (DPTT)

A progress report was presented in terms of statistics on grievances handled and resolved in each district as well as disputes lodged by the Province in terms of the ELRC Dispute Resolution Mechanisms.


To overcome challenges in the implementation of infrastructure monitoring, Parties resolved that the matter would not feature in the Chamber APP for the 2017/18 financial year, as it does not reside with the Department of Education.


No changes were made to the planned targets.


2016/17



R’000 R’000 R’000


R344 R320 R24

Total R344 R320 R24




3.1.1.3 Gauteng


Collective Bargaining Services: Gauteng


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Strategic Planning Workshop (SPWs)To conclude Chamber programmes and budget for the new financial year

n/a Workshop (1) Achieved

One SPW was held during the period under review.

Meeting Dates:6 December 2016

None

Teacher DevelopmentMonitoring reports on provision of Teacher Development programmes

Achieved

Two (2) meetings were convened during the period under review on Teacher Development

Meeting Dates:4 December 2015 15 March 2016


Three meetings were convened during the period under review on Teacher Development in which reports were presented and adopted.One workshop was also convened.

Meeting Dates:17 November 201621 February 201710 March 20174 November 2016 (Workshop)

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Dispute PreventionMonitoring reports on the categories and status of the grievances

Achieved

Four meetings were convened during the period under review on dispute prevention.

Meeting Dates:19 August 201527 October 201518-19 February 201611 March 2016


Four meetings were held during the period under review on disputes and grievances from the Task Team. Reports were presented and adopted in these meetings.

Meeting Dates:10 June 201621 November 201622 February 201729 September 2016

None

Post ProvisioningA consolidated report on the consultation process for post provisioning is available

Not AchievedOnly two meetings took place on:13 November 2015 4 December 2015


Three meetings and one workshop were held during the period under review in which reports on PPN were presented and adopted.

Meeting Dates:20 May 2016 (Workshop)15 August 201615 September 201627 March 2017

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Implementation of Collective Agreements i) IQMS ii) PMDSTo monitor the evaluation of educators in terms of the Performance Management System


Four meetings were held during the period under review on the implementation of Collective Agreements (IQMS, PMDS) in which reports were presented and adopted.

Meeting Dates:6 June 201629 September 201622 February 201710 March 2017

None

Temporary EducatorsTo monitor the extent of the utilisation of temporary educators and a reduction through absorption


Four meetings were held during the period under review on temporary educators in which reports were presented and adopted.

Meeting Dates:10 June 201616 November 201613 February 201717 March 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status



Not Achieved

Only one meeting was held on:15 March 2016


Four meetings were held during the period under review on employee wellness in which reports were presented and adopted.

Meeting Dates:6 June 201616 August 201617 November 201620 February 2017

None

Performance Overview of the Gauteng Chamber for the 2016/17 Financial Year

The Chamber was able to achieve its set objectives during the period under review. The relationship of trust among Parties to the Chamber made it possible to achieve this because of labour peace prevalent in the Province. The performance and achievement of the Province, evident in the matric results for the past five years, has been encouraging thus far. During the period under review, the ELRC has been able to provide Parties with space for further and meaningful engagement. This took place during a number of meetings and workshops, as discussed below.

Teacher Development

At the Special Chamber meeting held on 29 April 2016 additional developmental training for educators was ratified. The training includes Just in Time, Cipelt and Ciselt.

A Workshop was held on 4 November 2016 and a Task Team Meeting on 17 November 2016 to discuss the training schedule for the fourth quarter of 2016/17 and the training schedule for 2017/18.

The report was tabled and ratified in the Chamber meeting on 2 December 2016. Task Team meetings were held on 21 February 2017 and 10 March 2017, respectively. Key issues discussed were common exams, professional learning communities, induction programmes and handover processes for newly appointed principals, unapproved training schedules, and the Teacher Development schedule for 2017/18.

This report was presented at the Chamber meeting held on 27 March 2017 for ratification of its decisions.

Dispute Prevention

The DPTT was convened on 10 June 2016. It continued to assess the impact of interventions geared at reducing cases reported and referred.




A DPTT meeting was held on 29 September 2016. The Task Team Meeting held on 21 November 2016 engaged on the detailed report on the status of grievances and types of misconduct and the nature of disputes. The meeting also discussed Circular 1: 2016 as well as Public Service Regulations 1: 2016. The report was tabled and ratified in the Chamber meeting of 2 December 2016.

In the DPTT meeting held on 22 February 2017, the following key issues were discussed: dereliction of duty by department officials and no actions are taken against them, independent presiding officers in labour cases, re-employment of dismissed educators with fewer offences and progress report on grievances/disputes.

Implementation of Collective Agreements

Of the 58 328 educators, 39 008 would receive pay progression due to them by 1 July 2016. A total of 19 320 educators do not qualify due to reasons varying from scores with valid reasons, rank date and appointment, while 67% qualified.

Performance Management Development System (PMDS)

Out of the 1 737 office-based employees, 1 526 would receive pay progression due to them by 1 July 2016.

The report was received on 6 June 2016 in a Task Team meeting and ratified by the Chamber on 14 June 2016.

The Task Team meeting was held on 29 September 2016. The process of collecting summative evaluations was conducted during the second quarter. This was discussed and agreed upon at the Special Chamber meeting held on 29 September 2016 at Mapungubwe Hotel, Gauteng.

IQMS Task Team meetings were held on 22 February and 10 March 2017 respectively. The issues discussed were the report on summative evaluations (school-based – IQMS, and office-based – PMDS) for 2017. This report was tabled in the Chamber meeting held on 27 March 2017 for ratification of recommendations and decisions.

Temporary Educators

The Employer tabled a report on the utilisation of temporary educators on 10 June 2016 in the Task Team meeting. There were 3 937 temporary educators in the department who qualified to be absorbed. Only 1 649 were absorbed as of May 2016. The Employer would work hard to ensure that the educators are absorbed in line with the policy. The draft would be applied in absorbing the remaining educators, as per Collective Agreement 1 of 2014. The Task Team meeting was held on 29 September 2016. A meeting was also held on 16 November 2016 to discuss the utilisation and conversion of temporary educators. The report was tabled and ratified in the Chamber meeting of 2 December 2016. Two Educator Resourcing Task Team meetings were held on 13 February and 17 March 2017 respectively. The key issues discussed were:

• Redress posts;

• Growth posts;

• Absorption of temporary teachers;

• Collective Agreement 4 of 2016 (interpretation and implementation);

• Guidelines for Open Vacancy Circulars For Educators and Education Therapist Posts; and

• Transfer of Educators (Draft Policy).

This report was tabled at the Chamber meeting held on 27 March 2017 and Special Chamber meeting held on 30 March 2017 for ratification of recommendations and decisions.



Employee Wellness

A Task Team meeting was held on 6 June 2016 in which the Employer tabled a progress report and an annual plan for the period ahead. The report was ratified by the Chamber meeting held on 14 June 2016. A Task Team meeting was held on 16 August 2016 to discuss the introduction and implementation of the Employee Wellness activities. Another meeting was held on 17 November 2016 to engage on the Government Employees Housing Scheme Progress Report and EHW Programme. The report was tabled and ratified in the Chamber meeting of 2 December 2016.

Further engagement took place during these meetings and workshops:

• Performance Review and Improvement Workshop, 23 February 2017

• Grade 12 Task Team, 6 and 28 February 2017

• Common Exams Task Team meeting, 6 March 2017

• ICT Task Team, 6 March 2017

• Chamber meeting, 27 March 2017

• Special Chamber meeting, 30 March 2917

• Special joint meeting between Magnet Schools and Grade 12 Markers, 30 March 2017


The Province has acknowledged the difficulty in the implementation of Collective Agreement No. 4 of 2016. However, the Chamber formed a technical task team and is looking into how to interpret and understand the circular. The Province has since adopted an APP for 2017/18.




2016/17



R’000 R’000 R’000


R382 R389 (R7)

Total R382 R389 (R7)




3.1.1.4 KwaZulu-Natal


Collective Bargaining Services: KwaZulu-Natal


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status



Not Achieved

Only three meetings took place on:10 June 20153 September 201530 November 2015

Workshop (1)Reports (3)

Not Achieved

Indicative Budget Workshop held on 15 June 2016. Only two meetings took place:Consultation on post creation held on 27 September 2016 Consultation on post distribution meeting held on 29 September 2016.No new posts were created.

Workshop (1) No new posts were created and, consequently, there was no need for progress reports to be presented on the filling of new posts.

Incentives for EducatorsMonitoring reports on the implementation of incentives for educators are available

Not Achieved

The planned workshop was not held in the first quarter.No Chamber meeting was held in the second quarter.

Workshop (1)Reports (3)

Achieved

Payment of Incentives Workshop was held on 27 June 2016.Progress reports on payment of incentives were presented and adopted in the following Chamber meetings:29 June 20162 December 201628 March 2016

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Employee Health and Wellness Monitor the introduction and implementation of employee wellness activities

Not Achieved

One scheduled meeting was postponed, as Parties did not form a quorum on the day of the meeting.

Reports (4)

Not Achieved

Progress reports were presented and adopted in the following Chamber meetings: 29 June 20162 December 2016 28 March 2017

Reports (1) No Chamber meeting was held during the second quarter.


Achieved

Two meetings were convened during the period under review on Teacher Development. Meeting dates:30 June 201530 March 2016


Progress reports were presented and adopted in the following Chamber meetings: 29 June 20162 December 201628 March 2017

Reports (1)

One progress report was not presented to the Chamber meeting during the second quarter as the meeting was not convened.

Dispute Prevention Monitoring reports on the categories and status of grievances, misconduct and disputes lodged

Achieved

Four meetings were convened during the period under review on dispute prevention. Meeting dates:30 June 201530 November 201515 December 201530 March 2016

Reports (3)Workshop (1)

Not Achieved

The planned workshop could not be convened in the last quarter. Progress reports were presented and adopted in the following Chamber meetings: 27 June 20162 December 201628 March 2017

Workshop (1) The Planned Labour Relations Workshop had been scheduled for 27 February 2017 and 20 March 2017, but had to be postponed due to unforeseen circumstances. A Labour Relations Workshop will be held in the first or second quarter of the 2017/18 financial year.






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


World Teachers Day Celebrations (5 October 2016) Facilitate and convene preparatory meetings for Parties to host celebrations


Five preparatory meetings were held in which reports were presented and adopted.

Meeting dates:24 August 201613 September 201616 September 201621 September 201629 September 2016Successful World Teachers Day Celebrations took place on 5 October 2016

None

Performance Overview of KwaZulu-Natal (KZN) Chamber for the 2016/17 Financial Year

The Parties to the KZN Chamber remain firmly committed to contributing towards the Quality Teaching and Learning Programme (QTLP). To this end, the KZN Chamber adopted this campaign as the overarching theme for all programmes of the Chamber.

It is pleasing to report on the performance of the KZN Chamber for the period under review as a whole, despite the Chamber meeting scheduled for the second quarter not taking place. This affected the yearly performance on all objectives of the APP, other than the World Teachers Day celebrations.

However, the productivity and effectiveness of the KZN Chamber must be measured by all task team meetings which took place and the subsequent Chamber meetings convened during three of the four quarters. Over and above this, some key recommendations have been adopted. The Chamber meetings also serve to receive reports and guide the work of the task teams which remain a work in progress. In addition to meetings held to deal with the pre-determined objectives as per the APP, the KZN Chamber has and continues to deal with additional matters as presented below.

Additional items tabled and dealt with at the Chamber, some of which remain works in progress:

• Audit/conversion of protected temporary educators;

• Receiving and analysing progress report on Payment of Government Employee Housing Scheme;

• Draft multi-term agreement (post provisioning) (target date – 30 April 2017);



• Finalisation of School and Office-based Promotions and related queries;

• Audit of vacant office-based posts;

• Draft Procedure Manual – Implementation of Affirmative Action;

• Draft Procedure Directive – Movement of Personnel between Employment of Educator’s Act, 76 of 1998 and the

Public Service Act, 103 of 1994;

• Transformation of Schooling System (to include the formulation of a Draft Procedure Manual to deal with educators

affected by redeployment);

• Absorption of COBBALT Practitioners (to find substantive posts to place four Level 1 educators);

• Rationalisation of Boarding Schools;

• The Transformation of the School System (TSS) (Draft Procedure Manual to deal with redeployment of educators);

• Grade R educators; and

• Monitoring of payment in respect of the Government Employees Housing Scheme.

Report on Dispute Prevention Strategies (DPSs)

The DPTT continued with its endeavours to promote labour peace in the Province. As per the motivation of the Task Team, a comprehensive Workshop was conducted by Adv Bono for Chamber delegates on 29 November 2016 on the newly concluded National Collective Agreements.

Among other issues dealt with by the DPTT as standing items, the following were handled:

• Presentation and analysis of reports on grievances and misconduct by the Employer;

• Report and analysis of dispute statistics by the Provincial Manager of the ELRC;

• Report on the presentation and analysis of deemed discharge in terms of Section 14 of the EEA No. 76 of 1998, as

amended;

• Report on grievances relating to conversion of educators’ status by the Employer;

• Discussion on contemporary case law which has implications on the educator;

• Formulation of a Dispute Prevention Strategy (DPS) to deal with charges relating to insubordination and other

categories of grievances/disputes;

• Non-adherence to grievance procedure/centralisation of grievance handling for promotion disputes; and

• The status of Provincial Collective Agreement 2/2008 (Dealing with the Displacement of Educators).


While underperformance has been recorded in the achievement of the predetermined objectives, there have been no profound issues or challenges that would warrant serious concerns regarding the productivity and effectiveness of the KZN Chamber.

This is evidenced by the number of meetings and workshops that were held to deal with the predetermined objectives as well as many additional items, as identified by Parties. The underperformance of the KZN Chamber has been occasioned by the failure of the Chamber to meet during the second quarter, which had a ripple effect on the performance of the entire period under review.

The only notable challenge pertains to the formulation of and adherence to a yearly meeting schedule. This was occasioned by the unavailability of Parties who, sometimes at short notice, become unavailable due to having to attend to their own urgent commitments, as was the case in respect of the failure to convene the scheduled Chamber meeting during the second quarter.




Parties have recognised the challenge of formulating and implementing a meeting schedule and have committed themselves to at least formulating a quarterly year planner. This strategy yielded some positive results during the fourth quarter of the 2016/17 financial year.




2016/17



R’000 R’000 R’000

Collective Bargaining Services: KwaZulu-Natal R447 R202 R245

Total R447 R202 R245



3.1.1.5 Limpopo


Collective Bargaining Services: Limpopo


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Post ProvisioningMonitoring reports on the process for schools post provisioning

Achieved

Four meetings were convened during the period under review, in which reports on PPN were presented.

Meeting dates:3 November 2015 9 November 201521 January 20161 March 2016


Four PPN consultations meeting were held on the following dates in which reports were presented and adopted:

11 October 201614 November 201629 November 20169 December 2016

None

Incentivised postsMonitoring reports on the implementation of incentives for educators are available

Achieved

Four meetings were convened during the period under review on incentives for educators.

Meeting dates:11 June 201528 September 201513 November 20151 March 2016

Report (4) Achieved

Four meetings on educator incentives were convened, in which reports were presented and adopted.21 June 201624 August 201616 November 201614 March 2017, and all preceding Chamber meetings.

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status



Achieved Four meetings were convened during the period under review on employee wellness.

Meeting dates:22 May 201522 July 201528 October 201525 February 2016


Four meetings on employee wellness were convened, in which reports were presented and adopted.

25 May 201622 July 201621 November 201617 February 2017

None

Dispute PreventionMonitoring reports on the categories and status of the grievances, misconduct and disputes lodged

Achieved




Dispute prevention reports were tabled and adopted on: 22 June 201612 August 201611 November 201624 February 2017

The reports gave a picture of progress made on finalised and pending disputes and grievances.

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Educators’ Performance Management Monitor the implementation of Performance Management instruments and policies


Educators Performance Management reports were tabled and adopted in Chamber on:

10 June 201619 September 201624 November 201622 February 2017

None

Curriculum and examinationsMonitor the implementation of the curriculum policy and the management of examinations


Reports on curriculum and examinations were presented and adopted in Chamber on:

26 April 201629 July 201623 November 20169 February 2017

None

School SafetyMonitor the implementation of schools safety programmes


Reports on school safety were tabled and adopted in Chamber on:

10 June 201617 August 201625 November 201616 March 2017

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Merging of schoolsMonitor the process of merging of small and non-viable schools


Reports on merging of schools were presented and adopted in Chamber on:


None

PILIRMonitoring reports on progress made in the processing of PILIR referrals


Reports on PILIR were presented and adopted in Chamber on:


None

Performance Overview of Limpopo Chamber for the 2016/17 Financial Year

The Limpopo Chamber achieved all of its set objectives during the period under review. This is a continuation of a series of the good performance results that the Chamber has been attaining in the previous years. The above achievement is attributable to the efficiency of various provincial task teams. On a quarterly basis, the Chamber discussed, among others, reports on the payment of incentives for remoteness to qualifying educators and the number of disputes lodged in respect thereof. An excess of 270 affected schools have, on their own or as represented by lawyers, reportedly lodged disputes on the non-payment of rural incentives.

Post Provisioning Norms (PPN)

On 17 January 2017, the Employer Party tabled the draft management plan in the task team meeting. Employee Parties indicated that their participation in the implementation of the tabled management plan was pending a comprehensive report on the filing of advertised promotional posts.

Incentivised Posts

The Limpopo Department of Education (LDoE) continued paying all qualifying educators. In excess of 270 schools have, on their own or as represented by lawyers, reportedly lodged disputes on the non-payment of rural incentives.



Employee Wellness

A total of 4 988 employees were reached for the purposes of marketing Employee wellness programmes. All calendar and commemorative days were reportedly observed, e.g., Candle Light Day, World Aids Day and Condom Week.

A total of 396 wellness referrals were attended to, 405 educators were provided with HCT, and 3 919 others were reached through other LDoE health partners.

In addition, 230 office-based employees and educators were trained on financial management, and 2 779 employees participated in organised and monitored activities to promote physical wellness.

Another 3 428 employees participated in medical screening, and Occupational Health and Safety (OHS) workplace audits were reportedly performed in 19 sites.

A total of 27 sites were reportedly monitored with regard to the implementation of waste management programmes, and 523 employees were attended to in respect of Compensation for Injuries on Duty (COID) Act.

Additional Achievements

Filling of Vacancy Lists

The Chamber continued to monitor the filling of advertised vacancy lists for promotional posts. The LDoE reported that of the 320 principals’ posts advertised and available on vacancy list no. 2 volume no. 1 of 2012 and vacancy list no. 1 volume no. 1 of 2013 for principals, 317 were filled. All 613 HOD posts that were available and advertised in vacancy list no. 2 volume 3 of 2012 were also filled. Of the 828 principals’ posts advertised and available in vacancy list no. 1 volume 1 of 2014, and vacancy list no. 1 volume 1 of 2015, 732 were filled.

In vacancy list no. 1 volume 1 of 2016 for deputy principals, 242 posts were advertised as available, and 227 of them were filled. In vacancy list no. 1 volume 2/2016, 768 posts were advertised and available for filling, and 736 of them were filled. Some advertised posts in all the above advertised vacancy lists were reportedly withdrawn and rendered unavailable for filling, e.g., as a result of them having been erroneously advertised or filled by an excess number of educators. Some unfilled posts were under dispute resolution processes.

Fundza Lushaka

Out of the 445 beneficiaries of the Funza Lushaka Bursary identified in 2015, 422 were available and legible for appointment at the beginning of 2016. From this cohort of educators, 367 were appointed at schools in Limpopo.

Again in 2016, 382 students were identified as beneficiaries of the Funza Lushaka Bursary. By the end of March 2017, 216 of the available 372 Funza Lushaka beneficiaries were appointed in Limpopo.

Educators’ Performance Management (IQMS and PMDS)

The LDoE reported that all office-based educators who were evaluated and found to be qualifying for performance incentives were paid on 22 December 2016. Out of the 821 expected submissions from office-based educators, 754 (i.e., 91.84%) reportedly complied and subsequently received pay progression for PMDS. A total of 29 educators are reported to have refused to be evaluated for various reasons, for example, some were reportedly retiring from the system and thus found evaluation to be of no value or consequence to them.

A 1% pay progression for the 2015 IQMS was effected for all 45 274 evaluated and qualifying educators. The ELRC PTT was yet to receive a progress report on the outstanding payment to 2 374 educators in the Sekhukhune District. The orientation and sign-up of educators for Continuing Professional Teacher Development (CPTD) was ongoing.




Merging of Schools

Out of 301 schools previously identified for merging, a total of 171 have been merged thus far. This includes 30 schools reported to have been merged into 14 schools in the fourth quarter, affecting 257 educators and 7 729 learners. The LDoE’s process of publicising these merged schools in a government gazette was reportedly at an advanced stage. A total of 68 schools have been moved from their former stations/locations.


Not applicable.




2016/17



R’000 R’000 R’000

Collective Bargaining Services: Limpopo R375 R330 R45

Total R375 R330 R45



3.1.1.6 Mpumalanga


Collective Bargaining Services: Mpumalanga


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/2017




Status


Post ProvisioningA report on the consultation process for post provisioning is available

Achieved


Meeting dates:11 June 201510 September 20153 December 201517 March 2016


Indicative budget meeting was held on 8 June 2016, in which a report was received and adopted in Chamber.

PPN consultation meeting was held on 19 October 2016, in which a report was received and adopted in Chamber.

Report was presented and adopted at the Chamber meeting on 24 November 2016.

The report was presented and adopted at the Chamber meeting of 23 March 2017.

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/2017




Status


Employee WellnessMonitor the introduction and implementation of employee wellness programmes

AchievedFour meetings were convened during the period under review on employee wellness.

Meeting dates:13 May 201511 June 20153 December 201517 March 2016


Task Team meetings on employee wellness were held on the following dates, in which reports were presented:2 June 2016 20 September 2016 9 November 2016 24 February 2017

Reports were also presented in the following Chamber meetings on: 24 November 201623 March 2017

None

Teacher DevelopmentMonitoring reports on the provisioning of Teacher Development programmes

Achieved


Meeting dates:10 June 201518 February 2016


Reports on Teacher Development were presented and adopted in the Chamber meetings on: 30 May 2016 6 March 2017 23 March 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/2017




Status



Achieved


Meeting dates:13 May 20158 September 20153 December 201517 March 2016


Reports on incentives were presented at the following meetings:18 May 20166 September 20162 November 201627 February 2017

Reports were also received in the following meetings:

Indicative budget meeting of 8 June 2016

Chamber meeting of 24 November 2016

Chamber meeting of 23 March 2017

None

Dispute PreventionMonitoring reports on the categories of grievances, misconduct and disputes lodged

Achieved


Meeting dates:11 May 201528 July 20151 September 201525 February 2016


Reports on dispute prevention were presented at the following meetings:18 May 2016 6 September 2016 2 November 201627 February 2017

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/2017




Status


Collective Agreements (IQMS and PMDS)To monitor the implementation of collective agreements


Reports on the implementation of collective agreements were presented at the following meetings:30 May 20169 November 2016

Task Team meeting of 6 March 2017

Reports were also presented in the following Chamber meetings: 24 November 201623 March 2017

None

Inclusive EducationLearners with Special Education Needs (LSEN)To monitor the implementation of Inclusive Education Policy


Reports on Inclusive Education were presented at the following meetings:25 May 201627 July 201627 February 2017

Reports were also presented and adopted in the following Chamber meetings:24 November 201623 March 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/2017




Status


ECDTo monitor the provisioning of ECD in the Province


Reports on ECD were presented in the Task Team meeting of 19 September 2016.

Reports were also presented and adopted in the following Chamber meetings:29 June 20169 November 201623 March 2017

None

Employment EquityTo monitor the improvement in the achievement of equity targets


Reports on Employment Equity were presented in the following Task Team meetings:7 June 201611 August 201611 November 20166 March 2017

Reports were also presented and adopted in the following Chamber meetings:24 November 2016 23 March 2017

None




Performance Overview of the Mpumalanga Chamber for the 2016/17 Financial Year

The ELRC Chamber in Mpumalanga appreciates that there were quite a number of achievements in the Province for the betterment of children’s education. The fact that there were no employee strikes shows that common ground is gradually being reached between the Employee Parties and the Employer.

It should also be noted that all efforts that were made through the Chamber were meant to improve the conditions of service for all the Parties, thereby resulting in the improvement in the yearly results for Grade 12, while not isolating the improvement in the other grades.

The Chamber managed to achieve the following:

• Conducted a workshop on the indicative budget for post provisioning.

• Finalised consultations on post provisioning and tabled reports at the Chamber.

• Received and discussed monitoring reports on the provisioning and implementation of programmes for the

development of teachers and the policy on incentives for educators.

• Successfully monitored the evaluation and implementation of Collective Agreements on IQMS and PMDS.

• Shared information on the introduction and implementation of employee wellness programmes and the finalisation

of applications for the PILIR.

• Analysed and endorsed the monitoring and progress reports on the implementation and provisioning of ECD

education, equity targets and inclusive education.

Additional achievements realised are as follows:

• Translated 1 206 temporary educators into permanent status

• Re-employed 1 564 temporary educators as of January 2017 to December 2017

• Matched and placed 115 educators

Conducted workshops on:

• Newly amendments enacted on the Pension Tax Laws

• Code of Professional Ethics

• ELRC Collective Agreements 3 and 4 of 2016

• Joint Labour Forum

Introduced and implemented programmes:

• School Electronic Reporting System

• Early Grade Reading Programme

• Electronic Recruitment

• Mentoring programme for female employees in junior positions

• Induction of newly employed educators

• Learner improvement performance plan

• Financial Rehabilitation Programme



Briefed on implemented programmes:

• CPTD

• School Sports

• Public Examinations

• Criterion on the identification of Maths, Science and Technology Academy (MSTA) schools

• Reduction in the level of terminations of service by educators


Not applicable.




2016/17



R’000 R’000 R’000

Collective Bargaining Services: Mpumalanga R268 R221 R47

Total R268 R221 R47




3.1.1.7 Northern Cape


Collective Bargaining Services: Northern Cape


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Post ProvisioningA consolidated report on the consultation process for post provisioning is made available

Achieved


Meeting dates:23 June 201511 August 20159 September 201515 September 2015


Reports on post provisioning were presented and adopted at the following meetings:23 June 201617 August 201629 August 201626 January 2017

None


Achieved


Meeting dates:6 May 20159 September 201513 October 20157 March 2016


Reports on incentives for educators were presented and adopted at the following meetings:7 June 201629 August 201629 November 201623 February 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Employee WellnessPlanning and monitoring reports on implementation of employee wellness activities

Achieved


Meeting dates:12 May 201515 September 201513 October 201531 March 2016


Reports on employee wellness were presented and adopted at the following meetings:28 June 201628 September 201624 November 201624 March 2017

None


Achieved


Meeting dates:14 April 201523 February 2016


Reports on Teacher Development were presented and adopted at the following meetings:22 June 201630 January 2017

None

Dispute PreventionMonitoring reports on the categories and status of the grievances, misconduct and disputes lodged

Achieved

Four meetings were convened during the period under review on Dispute Prevention.

Meeting dates:22 April 20159 September 20157 October 201531 March 2016


Reports on Dispute Prevention were presented and adopted at the following meetings:28 June 201628 September 201624 November 201624 March 2017

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


IQMS/PMDSConsolidated report on assessed and paid employees is made available


Reports on IQMS and PMDS were presented and adopted at the following meetings:1 December 201624 March 2017

None

Temporary Educators and ConversionConsolidated report on the appointment and conversions of temporary educators


Reports on temporary educators and conversion were presented and adopted at the following meetings:17 May 201626 October 201615 February 2017

None

Advertisement and Filling of PostsSharing information on the advertisement and filling of posts


Reports on advertising and filling of posts were presented and adopted at the following meetings:17 May 201628 November 2016

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Curriculum and ExaminationsMonitor the implementation of the curriculum policy and the examinations


Reports on curriculum and examinations were presented and adopted at the following meetings:30 June 201612 July 201618 November 201615 February 2017

None

Performance Overview of the Northern Cape Chamber for the 2016/17 Financial Year

The report briefly reflects on activities held during the period under review. The Provincial Chamber was able to achieve all its objectives, as set out in the APP.

Apart from the identified objectives, the Chamber also adhered to the ELRC’s constitutional obligations. The Chamber was able to monitor a number of programmes identified during the previous financial year and built on the progress of the implementation of those programmes.

Curriculum and Examinations

• It was reported that 136 examination centres were registered across the Province which included public schools,

correctional services, independent centres and one provincial established centre. 11 993 full-time candidates and

1 665 part-time candidates, a total of 13 658, registered in the Province.

• The meeting in the fourth quarter reported on the comparative pass rate of 2005 to 2016, the pass rate per district,

the progressed Grade 12 candidates and the pass rate according to quintile and gender.

Post Provisioning

• PPN was finalised and concluded on 29 August 2016.

• The January 2017 meeting presented the status of the 2017 staff establishment, indicating that the staff establishment

was issued to 533 public, 11 special and 12 full-service schools on 1 September 2016, with the final establishment

issued after the appeals process on 25 October 2016.

• The eight additional educators, who were allocated to six of the ten technical schools to facilitate the tuition of the

newly introduced technical subjects, were also highlighted.




Teacher Development

• A Task Team was setup specifically to deal with under- and unqualified educators. This Task Team reports under the

Teacher Development performance indicator.

• The Chamber is to recommend the funding for bursaries for unqualified educators, considering the time frame that

someone with a bursary will take to complete the qualification and/or to come up with a recommendation for the 422

unqualified teachers.

• It has to be determined how many teachers will need Recognition of Prior Learning (RPL) to be qualified.

Educator Incentives

The reports were mainly on the number of incentivised educators and schools before and after appeals per district. The cost implications of schools that appealed per district amounted to a total of R572 400.00 for eight schools, of which four were approved.

The salient points raised include that:

• Treasury does not allocate for rural incentives.

• Employers will have to account to SCOPA for how they spent money which they did not have on personnel.

• The requests for additional posts also place further pressure on the budget.

IQMS/Employee PMDS

• A statistical report on IQMS and Employee PMDS, as well as challenges encountered and recommendations thereof,

were discussed in the first meeting.

The statistics of the summative evaluations in December 2015 was given per district. This report includes the reasons for non-evaluation. A special Chamber meeting to address the following items was requested:

o Confidentiality – Labour wanted the Employer to disclose the names of educators, stating that the constitution of the ELRC maintains the protection of information discussed in Chamber. The Employer relies on the collective agreement which states that the information stays between the employee and the supervisor.

o Interpretation of Collective Agreement 8 of 2003: Interpretation of Collective Agreements that Deal with Senior and Master Teachers – Labour indicated that the Employer was promoting senior and master teachers. Collective Agreement 5 of 2006 and Collective Agreement 4 of 2009 were mentioned. The Employer indicated that PAM (2016) states that when a PL1 teacher reaches notch 103, he/she must become a senior teacher, and those who reach notch 120 must be made a master teacher.

o Job Descriptions – Labour previously requested that all educators must have their job descriptions. It was reported that the cut-off date for all educators to have co-signed their job descriptions was 31 March 2017. The practicality thereof was questioned and tested.

Employee Health and Wellness (EHW)

A progress report on the four pillars of EWH was presented each quarter. The four pillars include:

o The management of HIV/AIDS, STIs and TB

o Health and Productivity Management

o Safety, Health Environment, Risk and Quality Management

o Wellness Management.

• For the year 2016/17, only three cases of injury on duty were reported and 20 ill-health retirement cases.



• Dispute Prevention

The statistics on misconduct were reported for each quarter. The following table shows the statistics on misconduct reported in the fourth quarter of the 2016/17 financial year.

PENDING FINALISED TOTAL

Misconduct 4 5 13

Grievances 7 5 9

Precautionary Suspension 2 0 0

Appeals 0 0 0

Disputes(Conciliations – Arbitrations) 7 8 0 6 15 6

Stanco Meeting

These meetings are held once per quarter. Labour Parties would send in their submissions for the upcoming Chamber agenda items.

Chamber Meetings

Collective Agreement Workshop

The workshop was held on 21 November at the Horseshoe Motel in Kimberley and attended by 38 delegates from all Parties. The presentation was delivered by the Chairperson of the ELRC, Adv Bono and the Senior Manager: DMS, Mr Moela.

Adoption

The Draft APP, Budget for 2017/18 and the Year Planner for 2017/18 was adopted in the Chamber meeting held on 8 March 2017.

Election of Chamber Chairperson and Deputy Chairperson

The nominations submitted by Parties are as shown in the table below.

Party Chairperson Deputy Chairperson

Employer Mrs Roseline Tyler (Employer) Ms Maureen Mahumapelo (Labour)

SADTU Mrs Roseline Tyler (Employer) Ms Maureen Mahumapelo (Labour)

Combined Trade Union – Autonomous Trade Union (CTU-ATU)

Mr David Mosegomi (Employer) Mrs H Human (Labour)

The Parties unanimously elected Mrs R Tyler as the Chairperson and Ms M Mahumapelo as the Deputy Chairperson.




Acting Allowances

Acting allowances were finalised in October 2016. A total of 93 cases were paid. A backlog that still exists in certain districts, as shown in the table below.

District Payment Breakdown Backlog

Frances Baard 16 13

John Taolo Gaetsewe 45 30

Namakwa 8 19

Pixley Ka Seme 9 41

ZF Mgcawu 15 11

TOTAL 93 114

The costs incurred for acting allowance for the period of April 2016 to January 2017 per district was also highlighted, which added up to a total of R 10 651 271.56.

Infrastructure Development

A total of 22 new and replacement schools were reported as being on the Project List across the Province. These include:

• Four Schools that had already reached Practical Completion

• Three Schools in Construction

• Four Schools in Tender Stage

• Seven Schools in Design Stage

• Four Schools in Initiation Stage


Not applicable.




2016/17



R’000 R’000 R’000

Collective Bargaining Services: Northern Cape R429 R332 R97

Total R429 R332 R97



3.1.1.8 North West


Collective Bargaining Services: North West


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status



Achieved


Meeting dates:12 June 201517 July 201522 July 201521 August 2015


Three meetings were held during the period under review, in which reports on PPN were presented and adopted.

Meeting dates:7 June 201630 August 201624 March 2017

None

Employee WellnessThe number of employee wellness activities introduced and implemented

Achieved


Meeting dates:12 June 201522 July 201521 October 201513 November 2015

Report (4) Achieved

Four meetings were convened during the period under review on employee wellness, in which reports were presented and adopted.


None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status



Achieved


Meeting dates:12 June 201513 November 2015


Three meetings were held during the period under review on programmes related to Teacher Development, in which reports were presented and adopted.

Meeting dates:22 June 201616 September 201617 March 2017 (Reports for the third and fourth quarters were presented at this meeting)

None

Dispute Prevention Monitoring reports on the categories and status of the grievances and disputes lodged

Achieved


Meeting dates:24 July 201515 September 201524 August 201530 November 2015


Four meetings were held during the period under review to receive reports on disputes and grievances from the Task Team.


None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Terminations (Contract Expiry, Resignations, Retirements, Deceased and Dismissals)Consolidated reports on the category of terminations are available


Four meetings were held on terminations, in which reports were presented and adopted.


None

QLTCSharing information on progress made in relation to QLTC activities


Three meetings were held during the period under review to receive and adopt reports on QLTC activities.

Meeting dates:22 June 201616 September 201617 March 2017 (Reports for the third and fourth quarters were presented at this meeting)

None






Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


IQMS/PMDSConsolidated report on assessed and paid employees is available

n/a Report (2) Achieved

Two meetings were convened during the period under review to receive reports on IQMS/PMDS.


None

Temporary EducatorsMonitoring the implementation of the Collective Agreement on temporary educators


Two meetings were held on temporary educators, in which reports were presented and adopted.


None

Advertisement and Filling of PostsSharing information on the advertisement and filling of posts


Two meetings were convened on the advertisement and filling of posts, in which reports were presented and adopted.


None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Rationalisation of SchoolsConsolidated report on merging of schools and phasing out of middle schools is available


Two meetings were held on the rationalisation of schools, in which reports were presented and adopted.


None

Performance Overview of the North West Chamber for the 2016/17 Financial Year

This section of the report discusses the programmes, activities and events that took place during the period under review. Reports on Teacher Development and QLTC for the third and fourth quarters were presented at the Chamber meeting on 17 March 2017.

The presentations on the budget for post provisioning, as well as reports on the distribution of post provisioning, which sought to guide and advise negotiators on the funding and allocation of posts, found expression during the three Medium-Term Expenditure Framework (MTEF) meetings. These meetings endorsed the budget and post provisioning presentations, and further deferred issues such as the quintile of schools, Teacher Development programmes, ECD, funding of special and full-service schools, safety and security at schools, and rural incentives to other structural meetings for further engagements.

The North West Chamber acknowledged that the non-submission of information regarding IQMS and PMDS contributed to challenges on payments as well as the delay of issuing appointment letters to temporary teachers who qualify for permanent positions, as per the dictates of Provincial Education Labour Relations Council (PELRC) Collective Agreement 1 of 2010. Challenges also relate to those employees who deserve to be appointed after being subjected to the programme of advertisement and filling of posts through interviewing processes.

A concern perpetually raised at Chamber meetings is that the performance of the North West Chamber has not been impressive, given the questionable implementation of the policy related to incentives for educators. The Chamber was cautioned that there is no budget allocation for this programme performance indicator. However, the Chamber commended the Employer for sourcing funds meant to incentivise deserving educators. As the Chamber was unable to achieve this objective, it was subsequently removed from the Revised 2016/17 APP.

Task Team meetings were convened during the period under review to analyse grievances and disputes. The work of the Task Team culminated in the finalisation of the DPS.

In an effort to enhance and sustain the cordial relationship among the Parties to Chamber, the North West Chamber further extended services to the constituencies of Parties to Chamber through participating in the activities coordinated by the Provincial Quality of Learning and Teaching Campaign (PQLTC) and the National Education Collaboration Trust




(NECT). These activities sought to ensure that programmes for guaranteeing quality education within the Province are intensified, realised and maintained. The Chamber was also acknowledged at the World Teachers Day celebration on 14 October 2016, and at the Matric Well Done function on 19 January 2017, which were both hosted by the Department of Education and Sports Development in Bojanala District. On 10 February 2017, the presence of the Chamber was also appreciated at the Matric Well Done function hosted by Dr Kenneth Kaunda District.

In advancing and promoting labour peace in the education sector, and pursuing the strategy to market the ELRC to its clients, the Chamber honoured invitations from the SADTU, as follows:

• On 29 July 2016, more than 60 participants, drawn from 21 schools, expressed appreciation for the presentation

at a workshop on labour-related matters, such as duties of employees, code of conduct, misconduct, grievance-

handling, dispute prevention and leave measures.

• The Chamber shared a message of support and promotional material from the ELRC at the PGC held from 23 to 25

September 2016. Delegates to the PGC commended the work of the ELRC.

The Provincial Chamber is constitutionally obligated to promote training and build capacity in favour of Parties and clients to the Council, with a view to mutually preventing and resolving labour disputes, which are also critical tasks for the Task Team dealing with grievances and disputes. With the support of the ELRC, the North West Chamber embarked on campaigns responding to the constitutional mandates by hosting two training sessions.

The first training session was mainly aimed at reciprocally dealing with conflict resolution within the education sector through defining the roles and responsibilities of both the Employer and employee. The session was conducted in Mahikeng on 16 November 2016. The training was on the PAM document, contained in the EEA, as amended.

The second training session was meant to capacitate personnel from the Human Resources units, departmental officials from Area Offices (Department of Education and Sport Development), and leadership drawn from unions who are stakeholders to the North West Chamber, including negotiators. The presentations covered:

• Post Provisioning and Grading Norms (chapter A)

• Appointments, Post Structure, Salary and Qualification Related Matters (chapter B)

• Allowances (chapter C)

• Examinations (chapter D)

• Awards and Benefits (chapter E)

• Time-off and Secondment (chapter F)

• Grievance Procedure (chapter G)

• Leave Measures (chapter H)

• General Provisions (chapter I)

The success of this activity was as a result of the remarkable and commendable contribution of the Parties, especially the Employer Party, in ensuring that logistics for the venue and other related resources were readily available on the day of the activity.

On 10 February 2017, delegates of Parties to the PELRC met at the PELRC offices with the intention of receiving, analysing and deliberating on the skills and knowledge imparted by facilitators from the ELRC at the training. The training dealt with ELRC Guideline: Promotion Arbitrations (Collective Agreement 3), the Transfer of Serving Educators in Terms of Operational Requirements (Collective Agreement 4), and the ELRC constitution (Collective Agreement 6), which were all signed during 2016.The purpose of this training was to minimise misunderstandings and probable disputes among the Parties by emphasising the importance of the interpretation and implementation of the collective agreements. The trainees appreciated the skills and knowledge acquired from the training.



The North West Chamber hosted a one-day SPW on 10 March 2017 to review the performance of the Chamber using the reports of the 2016/17 financial year, with the purpose of realigning the APP with the budget for the next financial year (2017/18).


The quarterly targets for the programme performance indicator “incentives for educators” were restructured to address the probable underperformance for the 2017/18 financial year. The SPW on 10 March 2017 recommended that the North West Chamber adopt biannual reporting instead of quarterly reporting. This will allow the Employer time to confirm the availability of funds for incentives before the end of the first quarter of the 2017/18 financial year.




2016/17



R’000 R’000 R’000

Collective Bargaining Services: North West R268 R206 R62

Total R268 R206 R62




3.1.1.9 Western Cape


Collective Bargaining Services: Western Cape


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status



Achieved


Meeting dates:9 June 20153 August 201530 September 20158 December 2015


Reports on Post Provisioning were received on the following dates:2 June 20161 August 20161 December 201629 March 2017

None

Dispute Prevention Monitoring reports on the categories and status of the grievances, misconduct and disputes lodged

Achieved

DPS developed and adopted.Report on the Implementation of the DPS.


Four meetings were convened during the period under review on Dispute Prevention in which reports were received.

Meeting dates:12 April 201626 May 20164 November 201629 March 2017

None





Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status


Universalisation of Grade R To monitor and receive reports on the implementation of the policy to universalise Grade R by 2019


Reports on universalisation of Grade R were submitted on:7 June 201614 September 20161 December 201629 March 2017

None

Assault (Corporal Punishment)

n/a Workshop (1)Reports (3)

Achieved

Workshop held on 26 May 2016 and reports received on:21 July 20161 December 201629 March 2017

None

Safety at Schools

n/a Workshop (4) Achieved

Reports on safety at schools were presented and adopted on the following meeting dates:17 May 201622 August 201617 November 201629 March 2017

Training workshops were conducted by the Employer on 31 May 2016.

None




Performance Overview of Western Cape Chamber for the 2016/17 Financial Year

The financial year under review saw a number of challenges, but the Chamber was able to be operative without any disruptions. The challenges that the Chamber faced related mainly to the postponement of a few meetings and partially to the achievement of one performance indicator, which is still in progress. The Parties exercised their respective rights within the framework of existing legislations and regulations. A thorny subject during this period was the Systemic Evaluations. The employee Parties and the Employer had their differences on the matter. Task Team meetings were held to deal with Systemic Evaluation, but, after a number of attempts to find common ground, the last meeting ended in a deadlock. The Chairperson of the Council and the General Secretary facilitated this process to ensure that an agreement was reached between the affected parties. Notwithstanding this deadlock, the activities of the Chamber were not hampered.

The Chamber was able to have a well-organised and focused SPW in January 2017, sponsored by Old Mutual, with minimal cost implications to the Council. The costs for the workshop related mainly to printing and binding of the documentation. The Chamber was thus able to develop a strategic plan for the 2017/18 financial year. The APP and budget for 2017/18 were adopted at the Chamber meeting on 29 March 2017. A number of workshops took place during the period which related to dispute prevention, safety at schools, corporal punishment prevention, PAM and the implementation of collective agreements. These workshops refreshed and energised parties’ participation with renewed outlooks for future endeavours.

The overall performance for the year ranged from satisfactory to fairly good. In terms of the identified objectives for the year, the aspects described below can be reported on.

Post Provisioning

The annual target for the period was that consultation be concluded and staff establishments be issued by 30 September 2016. It should be noted that the consultation was concluded on 1 August 2016 and the staff establishments were issued to all institutions on 30 August 2016. The quarterly objectives, as postulated in the 2016/17 APP, related to a preparatory meeting which was held on the 2 June 2016. Meaningful consultations and the creation and distribution of post provisioning were concluded on 1 August 2016 and 30 August 2016, respectively. A report was tabled on anomalies in staff establishments at the meeting of 1 December 2016, and an implementation report was tabled at the Chamber meeting on 29 March 2017. Taking this into account, the objective was fully implemented, hence Parties should be applauded for the commitment displayed in this regard

Dispute Prevention

The annual target related to the development and adoption of a DPS and report on the implementation of the DPS. The DPTT had numerous meetings and worked tirelessly in their efforts to ensure that this objective is met. However, it should be reported that although some of the quarterly objectives were met, which related to the analysing of statistics by the task team, the development, adoption and implementation of the DPS was, unfortunately, not met. The Chamber has committed itself to completing the work undertaken by the task team. This objective was partially achieved and, therefore, has been redefined in the 2017/18 APP.

Universalisation of Grade R

The annual target related to the presentation of four quarterly reports on the matter. A task team was established on 2 March 2016 to ensure that the identified objectives are met. The task team’s purpose is to provide strategic direction and leadership to ensure that progress reports are received on matters relating to ECD and Grade R, and to ensure the implementation of the policy to universalise Grade R by 2019, as proclaimed by the State President in 2015. The task team went beyond its brief and has developed and adopted Terms of Reference in which the operations appear , while regular reports were also submitted, tabled and discussed at task team and Chamber meetings. Reports were tabled on 7 June 2016, 14 September 2016, 1 December 2016, 8 March and 29 March 2017. The commitment displayed by the members of this task team contributed to the achievement of the objectives and quality of the discussions.



Assault (Corporal Punishment)

The annual target indicated that a strategy should be in place. The DPTT also dealt with corporal punishment prevention. A workshop was held on 26 May 2016 and Parties unpacked the reasons why educators may still apply corporal punishment to learners. Parties also agreed that assault was different from corporal punishment and that, if an educator was charged, appropriate legislation in relation to corporal punishment should be applied. A joint circular was drawn up by all Parties encapsulating the strategy, which was then adopted and disseminated to institutions. Parties launched advocacy campaigns individually with their respective constituencies and submitted reports to the Provincial Manager. A collective report was completed on the advocacy campaigns and tabled at the Chamber meetings on 1 December 2016 and 29 March 2017. At the task team meeting held on 26 January 2017, Parties analysed the statistics provided by the Employer, and a noticeable decrease was observed in cases relating to corporal punishment compared to the same period in 2015. The annual and quarterly objectives have thus been met.

Safety at Schools

The annual target for this performance indicator relates to monitoring the implementation of the Safety at Schools Strategy and reporting on the implementation of the strategy. It should be noted that training was conducted by the Employer throughout the year at different institutions on the National School Safety Framework (NSSF). The meeting held on 17 May 2016 outlined the workshops and training that the Employer envisaged and who the targeted audience is. The first workshop and training was held on 31 May 2016 at the Cape Teaching Leadership Institute (CTLI) to workshop attendees on the aims, objectives and general topics in the NSSF. At subsequent meetings held on 14 September 2016, 17 November 2016, 1 December 2016, 9 March and 29 March 2017, reports were tabled in order for the Chamber to be kept abreast of developments regarding safety and security at schools, and also to monitor the implementation of the NSSF Strategy. A Safety Procedural Manual on Safety and Security at the Western Cape Education Department institutions is being developed.


Not applicable.




2016/17



R’000 R’000 R’000


R397 R290 R107





3.2 Programme 2: Dispute Management Services

Purpose

The purpose of Programme 2 is to manage disputes proactively. This includes the prevention of disputes by, for example, defusing conflicts that can disrupt teaching and learning. It also includes dispute resolution. Professional development and training are included in Programme 2 to ensure that DRPs and Panellists operate effectively.


• Provide efficient dispute resolution services;

• Ensure quality of arbitration awards;

• Provide training to DRPs and/or negotiators; and

• Provide Professional Development to Panellists.


DMS


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status

Provision of dispute resolution services

To schedule cases in jurisdiction for conciliation within 30 days after receipt of referral

Not Achieved

94%378 out of 403 cases conciliated, 378 were conciliated within 30 days.

80% of cases in jurisdiction scheduled for conciliation within 30 days after receipt of the referral.

Achieved

89,4%435 out of 435 cases conciliated, 389 were conciliated within 30 days.

+9,4 Overachievement due to the increased number of Panelists and improved efficiencies in the Department.

To schedule cases for arbitration within 45 days after receipt of referral

Not Achieved

81%182 out of 224 cases arbitrated, 182 cases were arbitrated within 45 days.

80 % of cases scheduled for arbitration within 45 days after receipt of the referral.

Achieved

86, 08%198 out of 230 cases arbitrated, 198 cases were arbitrated within 45 days.

+6,08 Overachievement due to the increased number of Panelists and improved efficiencies in the Department.

100% Quality Control (QC) done in all arbitration awards concluded.

Achieved

100%

QC done of all arbitration awards concluded during the financial year.

Achieved

100%191 awards received were quality controlled.

None

Facilitate four training sessions for professional development of Panellists

Not Achieved Facilitate four training sessions for professional development of Panellists.

Achieved

Four training sessions conducted.

None



Overview of the DMS Department’s Performance for the 2016/17 Financial Year

Disputes referred by financial year

A total of 873 disputes were received by the Council for the 2017/16 financial year. There was an increase of 15 disputes, compared to the 858 received in the 2015/16 financial year. The nature of disputes referred to the Council during the period under review predominantly relates to ULPs in promotion and appointments and unfair dismissals. The Council has developed guidelines on promotion disputes and continuously trains Practitioners and Commissioners alike on the implementation of such guidelines in order to ensure that such disputes are resolved expeditiously. The Council also strengthened and amended its constitution to align it with the CCMA rules and LRA, as amended.

Disputes referred in jurisdiction

For the period under review, the ELRC received a total of 873 disputes. Of these, 475 disputes were deemed to be “in jurisdiction”, and 398 disputes were found to be “out of jurisdiction”.

Disputes referred by province

194

157 149

10285

54 47 43 42

KZN EC GP WC LP NW MP NC FS

Disputes referred by Province

KwaZulu-Natal (KZN) referred the highest number of disputes, which totalled 194. This was followed by the Eastern Cape (EC) with 157 disputes and Gauteng (GP) with 149 disputes. The Western Cape (WC) referred 102 disputes, Limpopo (LP) referred 85 disputes, the Free State (FS) referred 42 disputes, the North West (NW) referred 54 disputes, Mpumalanga (MP) referred 47 disputes, and the Northern Cape (NC) referred 43 disputes.

In comparison to the 2015/16 financial year, the Council has seen fluctuations in disputes in the 2016/17 financial year. The number of disputes from the Western Cape increased by 26 cases, and for the Free State it increased by 26 cases. KwaZulu-Natal disputes increased by 20, Gauteng increased by 13, and Mpumalanga and the Northern Cape increased by only four disputes each, while Limpopo increased by one dispute. On the other hand, the Eastern Cape decreased by 12 disputes and North West decreased by 15 disputes.




Nature of disputes referred

Province

ULP Promotions

and Appointments

Other ULPs

Unfair Dismissal

Special disputes

(dismissal related to abuse of learners)

Basic Conditions

of Employment Act (BCEA)

Interpretation of Collective Agreements

Mutual Interest Total

EC 46 37 27 0 21 26 0 157

GP 34 36 59 3 5 12 0 149

FS 5 13 12 0 1 11 0 42

LP 16 31 19 1 13 5 0 85

MP 9 17 17 1 1 2 0 47

NW 16 10 21 0 2 5 0 54

NC 29 3 6 0 2 1 2 43

WC 24 30 33 1 2 12 0 102

KZN 46 63 58 0 10 16 1 194

NAT 0 0 0 0 0 0 0 0

Total 225 241 252 6 57 90 3 873

Disputes in jurisdiction according to the nature of the dispute

Province

ULP Promotions

and Appointments

Other ULPs

Unfair Dismissal

Disputes related to abuse of learners

BCEAInterpretation of Collective Agreements


EC 29 13 9 0 16 17 0 84

GP 16 17 31 2 3 11 0 80

FS 0 6 6 0 0 10 0 22

LP 5 18 11 1 4 5 0 44

MP 3 12 12 1 1 1 0 30

NW 8 6 13 0 2 4 0 33

NC 9 3 4 0 1 0 2 19

WC 11 13 26 1 0 12 0 63

KZN 18 34 26 0 7 14 1 100

NAT 0 0 0 0 0 0 0 0

Total 99 122 138 5 34 74 3 475

Of the 873 disputes received by the Council, 475 were found to be jurisdictional. Of the 475 that were jurisdictional, 99 related to promotions and appointments, 143 to alleged unfair dismissals, and 122 to other ULPs. A total of 74 disputes related to the interpretation of collective agreements, while 34 related to the Basic Conditions of Employment Act (BCEA). A total of five disputes involved learners, and three were mutual interest disputes.



Disputes out of jurisdiction according to the nature of the dispute

Province

ULP Promotions

and Appointments

Other ULPs

Unfair Dismissal

Disputes related to abuse of learners

BCEA Interpretation of Collective Agreements


EC 17 24 18 0 5 9 0 73

GP 18 19 28 1 2 1 0 69

FS 5 7 6 0 1 1 0 20

LP 11 13 8 0 9 0 0 41

MP 6 5 5 0 0 1 0 17

NW 8 4 8 0 0 1 0 21

NC 20 0 2 0 1 1 0 24

WC 13 17 7 0 2 0 0 39

KZN 28 29 32 0 3 2 0 94

NAT 0 0 0 0 0 0 0 0

Total 126 118 114 1 23 16 0 398

Of the 398 disputes found to be out of jurisdiction, 126 related to ULPs in promotions and appointments, 116 were other ULPs, 115 related to unfair dismissals, 23 to the BCEA, 16 related to the interpretation of collective agreements, and one was a special dispute (abuse of learners).

It must be noted that the substantive amount of disputes that were screened as out of jurisdiction were due to defective and incomplete referrals, including those that were referred outside time frames and condonations that were not granted.

Conciliation and arbitration processes conducted, 1 April to 31 March 2017

Province Conciliation/Pre-arbitration Arbitration Total

KZN 58 171 229

GP 77 200 277

FS 23 69 92

EC 55 165 220

WC 55 128 183

NC 14 23 37

MP 29 32 61

NW 34 62 96

LP 33 89 122

NAT 0 0 0

Total 378 939 1317

A total of 1 317 processes were conducted for the 2015/16 financial year. Of these, 378 were conciliations, and 939 were arbitration processes. The statistics reveal that all conciliations were concluded in a single event. The Council had a decrease of 200 events in the 2016/17 financial year, compared to a total of 1 517 in the 2015/16 financial year. This can be attributed to the fact that cases are no longer automatically set down for arbitration processes after the matter remained unresolved in conciliation. Applicants have to apply for arbitration within 90 days after conciliation has not been achieved.




Dispute by Outcomes

The ELRC finalised a total of 513 disputes during the 2016/17 financial year. A total of 191 arbitration awards were rendered. A total of 57 disputes were settled at arbitration, while 25 were settled at conciliation. A total of 130 were withdrawn, with 58 withdrawn at conciliation and 72 withdrawn at arbitration. A total of 18 cases were dismissed at arbitration, and 92 rulings were handed down during this period.

Outcome of Special Disputes

A total of 14 special disputes were referred to the Council during the period under review. These disputes involved a child or learner as a victim or witness. Eight awards relating to special disputes were rendered in the period under review. The speedy finalisation of special disputes is dependent on the complexity of the cases, as well as the number of adjournments and postponements granted. Some of the special disputes are inherently complex and require a significant number of witnesses.

Carried-over cases per financial year

A total of 227 cases were carried over to the first quarter of the 2017/18 financial year. Of these, 192 are for the period under review, while 35 cases are from the previous years and remain unresolved.

Postponements and Adjournments

A total of 122 cases were postponed for the period under review, and 104 adjournments took place. The adjournments are as a result of the complex nature of the cases, and these cases were not finalised during the first hearing. Postponements occur as a result of matters not sitting due to the fact that some Panellists are unable to conclude pre-arbitration minutes with the Parties (as those Parties either come unprepared to the hearing or the person attending the hearing was appointed on the day of the hearing and does not know much about the dispute). Clause 45 of the Council’s constitution, however, provides for the postponement of matters.

Labour Court Reviews

In the period under review, a total of 65 arbitration awards/rulings were referred to the Labour Court for review in terms of Section 145 of the LRA of 1995, as amended. The remaining 65 review applications are still in the process of being heard by the Labour Court.


The Council continues to recruit interpreters and intermediaries in order to overcome delays and postponement problems associated with unavailability of such persons when they are so requested. These persons are critical in ensuring that the rights of the child are protected in disputes where the child is attending arbitration processes, either as a victim or witness.

Furthermore, in hearings where a child is a victim or a witness, the Council continues to ensure that appropriate venues are booked for these special hearings, e.g., a Magistrate’s Court, Children’s Court, or Teddy Bear Clinic (Johannesburg), and the DSD in the Free State and Northern Cape. The Council will also ensure that intermediaries are appointed to protect the rights of the child. As stipulated in Section 28 of the RSA Constitution, “The right of the child is of paramount importance in all matters concerning the child”. The Council has also concluded collective agreements on the guidelines to promotion disputes in the education sector as a proactive measure to reduce the number of disputes associated with promotions and assist commissioners to resolve promotion disputes expeditiously.






2016/17



DMS R’000 R’000 R’000

Dispute Resolution Services R12,813 R12,109 704

Dispute Prevention Services R147 R112 R35

Professional Development and Training Services

R359 R350 R9

FETCs - - -

Total R13,319 R12,571 R748

3.2.1 Disputes Management Services – Higher Education and Training (FET)

Cases Referred

During the 2016/17 financial year, a total of 111 TVET disputes were referred to the Council. The number of disputes referred increased by 44 compared to 87 disputes received in the 2015/16 financial year. Out of the 111 disputes referred, 68 were found to be “in jurisdiction” while 43 were “out of jurisdiction”.

Disputes Referred by Nature

Of the 111 disputes referred, 39 related to dismissals, 48 to other ULPs, six to promotions and appointments, five to BCEA, and 13 to the interpretation of collective agreements.

ULP-Prom/ Appointment Other-ULP Dismissals BCEA Application/

Interpretation Total

6 48 39 5 13 111

Events/Processes Conducted

During the period under review, a total of 191 events/processes were conducted, as shown in the table below.

Conciliation/Pre-arbitration Arbitration Total

63 128 191

Dispute Outcomes

During the period under review, 68 cases were finalised. Five cases were withdrawn at conciliation, and six were withdrawn at arbitration. Seven cases were settled at arbitration, nine were settled at conciliation, 35 arbitration awards were rendered, and six rulings were issued.

WithdrawnConciliations

DismissedConciliations

SettledConciliations

WithdrawnArbitrations

DismissedArbitrations

SettledArbitrations Awards Rulings Total

5 0 9 6 0 7 35 6 68




Postponements and Adjournments

During the period under review, 16 requests for postponement were granted. There were 10 adjournments to matters which were convened for a hearing.

Cases Carried Over From Previous Financial Years

A total of 19 cases are being carried over to the 2017/18 financial year; five of these cases relate to the 2015/16 financial year.



3.2.2 Training and Development Services

Professional Development and Training Workshops for Panellists

The ELRC organised and conducted four professional development and training sessions for Panellists in the 2016/17 financial year. The training focused mainly on the law of evidence where a learner is either a victim or witness, as well as on the transfer of educators as a result of operational requirements, and guidelines on promotion disputes.



3.3 Programme 3: Corporate Services

Purpose

The purpose of Programme 3 is to provide support services to the core operational functions of the Council and to ensure that it delivers an efficient and effective service on its mandates.

Sub-Programmes:

• Mobilising Employee Services

• Communication Services

• Information Technology (IT)


• To professionalise the ELRC by investing in human capital.

• To promote the corporate image of the ELRC.

• To ensure the continuous availability, reliability, effectiveness and efficiency of ICT systems.

Human Resources


Corporate Services: Human Resources


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status

Professionalise the ELRC by investing in human capital

Building capacity by ensuring that employees are trained and developed

Achieved

30 employees trained.

30 employees to participate in human development programmes matching entity requirements.

Achieved

56 employees participated in human development programmes.

26 employees Workshops conducted for all staff on Risk Management, Fraud Prevention and Compliance Management that were not planned.

Number of employee wellness programmes conducted

Achieved

Four wellness programmes conducted .

Six wellness programmes.

Achieved

Seven wellness programmes conducted.

+One Wellness programme.

There was a need for one extra wellness programme to uplift staff morale.

Filling of vacant positions

Achieved

All recruitment was done within 90 days or less.

All vacant funded positions filled within three months of request received.

Achieved

Eight vacant positions were filled within three months of request received.

None





2016/17

Programme Name Budget Actual Expenditure (Over)/Under Expenditure

Administration Services R’000 R’000 R’000

Mobilising Employees R999 R943 R56

Total R999 R943 R56

Research and Media


Research and Media


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status

Advertising and marketing to improve the image of the Council

Achieved

Exhibitions

Education Week at Gallagher Estate from 1 to 2 July 2015.

Inspired Teacher’s Conference at Varsity College on 18 August 2015 in Sandton.

International Labour and Employment Relations Association (ILERA) Congress from 7 to 11 September 2015 in Cape Town.

South African Council for Educators (SACE) Inaugural Fun Walk on 19 September 2015 in Centurion.

Conduct advertising campaign comprising of five activities to market the Council in different media (e.g., magazines, radio, social media, newspapers, Parties’ newsletters etc.).

Achieved

Exhibition at National and Provincial Events

TASP June 16 celebration held on 15 June 2016.

African Education Week on 29 and 30 June 2016.

HR Issue in Schools Symposium 2016 on 20 July 2016.

SADTU’s PGC on 23 and 25 September 2016.

PEU Congress on 7 October 2016.

Naptosa Congress on 26 and 27 October 2016.

None



Research and Media


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status


Achieved

Exhibitions

Exhibition at the Naptosa National Congress on 28 October 2015.

Print Media

Advertorial in Suid-Afrikaanse Onderwysersunie’s (SAOU) August 2015 newsletter.

Distribution of Material

Provincial SPWs (nine) in February and March 2016.

Naptosa’s Annual Staff Training in January 2016.

Poster Advertising

In the education faculties of 18 tertiary institutions.

Stakeholder Events

Council participated in World Teachers Day Gala Dinner event on 30 October 2015.


Achieved

Exhibition at National and Provincial Events

SADTU’s Novice Day, in the Western Cape on 28 January and 4 March 2017.

SADTU’s Provincial Conference in East London on 23 and 24 March 2017.

Collaborative Marketing

TASP World Teachers Day celebration held on 5 October 2016.

Launch of Zibuza.net on 5 October 2016.

NATU published an ELRC advertorial in their 2017 diary.

Marketing of Council Services and Developments

In the June and September 2016 issue of the Labour Bulletin and New Negotiator.

None




Research and Media


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status



Achieved

Marketing Material Distributed

At SADTU’s TVET Colloquium on 3 and 4 June 2016.

Advertising on Social Media

The following were posted on social media platforms:• ELRC vacancies• Notification of the

PAM workshops• World Teachers

Day Celebrations• Labour Bulletin

and New Negotiator articles

• 16 Days of Activism Against Women and Child Abuse commemorations

• World Aids Day Commemorations

• Messages of Support to the Class of 2016

None

Overview of the Research and Media Department’s Performance for the 2016/17 Financial Year

The Council implemented a media strategy during the period under review that focused on creating brand awareness among educators in public education. The Council participated in eight exhibitions during the period under review and also had collaborative events with other stakeholders.

As part of the June 16 Commemorations, the Council exhibited at the Alexandra Community Hall. The Council also exhibited at the annual Africa Education Week 2016 at Gallagher Estate on 29 and 30 June 2016.

As a way to market the Council to other education stakeholders, the Council exhibited at the HR Issue in Schools Symposium 2016 on 20 and 21 July 2016. The event was attended by principals, SGBs, circuit managers, district officials and union representatives.



The Council also participated in provincial events to market itself in all nine provinces. These include the SADTU’s PGC from 23 to 25 September 2016 in Rustenburg.

Marketing material was distributed at the TASP World Teachers Day celebrations at the DBE Conference Centre on 5 October 2016. The Council also exhibited at the PEU Congress on 7 October 2016 and at the Naptosa Congress held on 27 October 2016.

In line with its collaborative endeavours, the Council attended the launch of Zibuba.net on 5 October 2016. Zibuza.net is an online community designed and dedicated exclusively for South African teachers. The Council partnered with the organisation to share the latest ELRC developments with teachers on the Zibuza.net platform.

As a member of TASP, the Council participated in the World Teachers Day Gala Dinner event on 28 October 2016, where ELRC branded material was also distributed.

The Council exhibited at the SADTU Novice Teachers Day in the Western Cape on 28 January and 25 March 2017 and SADTU’s Provincial Conference, which took place from 23 to 25 March 2017.


Not applicable.




2016/17



Communication Services R674 R432 R242


Information Communication Technology (ICT)


ICT


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status

Ensure the continuous availability, reliability, effectiveness and efficiency of ICT systems

n/a Upgrade of servers to the blade servers, Wireless (Wi-Fi), Virtual Private Network (VPN) and current telephone system to a unified telecommunications system.

Achieved

The new server and new unified telephone system were procured.

None




ICT


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status

n/a Introduction and implementation of approved new ICT policies and procedures.

Achieved

ICT policies were approved by EXCO and ICT provided training to staff on policies.

None

n/a Aligning the ICT strategy with the Council strategy.

Achieved

The Risk Register for ICT is monitored on a monthly basis.

The ICT Governance Report is tabled at quarterly Audit Committee meetings.

Monitoring of backups and Disaster Recovery is tested on a continual basis.

None

n/a Introduction and implementation of Office 365 by 2016/17 financial year.

Achieved

Office 365 has been installed on all computers and training was conducted for all users.

None

Overview of the ICT Department’s Performance for the 2016/17 Financial Year

In the 2016/17 financial year, ICT has been upgraded, and infrastructure has increased in capacity including through the procurement of a new server to run Evolution and People applications. ICT has also improved the telephone system by installing a VOIP new unified 3CX telephone system integrated with Man 3000, which provides itemised billing report and support mobility.

ICT developed and conducted training and ensured compliance with all policies approved by EXCO including the ICT Security Policy, ICT Governance Framework, Disaster Recovery Plan, Backup Policy, Business Continuity Plan, Internet and Email Policy, Incident Management Policy, User Access Policy, and ICT Change Management Policy. The ICT Strategic Plan is embedded in the Council strategy.

ICT installed new anti-virus software (Kaspersky) and Office 365 to all computers and also upgraded the bandwidth from 6Mb to 10Mb to ensure high-performance Internet connectivity. ICT has changed to a new backup system, Comvault, which replicates data to the cloud.




Not applicable.




IT, Finance and SCM

2016/17



Finance, Accounting Services and Facilities Management Services R17,337 R16,177 R1,160

Total R17,337 R16,177 R1,160




3.4 Programme 4: Finance and Supply Chain Management Services

Purpose

The purpose of Programme 4 is to ensure that contracts for goods and services are made in accordance with a system which is fair, equitable, transparent, competitive and cost effective, as per section 217 of RSA Constitution.


• Provide a compliant internal control and sound Financial Management service.

• Implement a new procurement and sourcing strategy to reduce procurement turnaround times and improve the

efficiency and effectiveness of our procurement spend.

• Provide sound asset management which includes safeguarding and maintenance of our assets.

• Implement reporting tools to minimise unauthorised and irregular expenditure and eliminate fruitless and wasteful

expenditure.

Finance KPIs, Planned Targets and Actual Achievements

Finance


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17




Status

To provide a compliant internal control and sound financial management service

Achieve unqualified audit opinion from external audit at year end

Achieved

Council received unqualified audit opinion.

Achieve unqualified audit opinion from external audit at year end

Achieved None

Overview of the Finance Department’s Performance for the 2016/17 Financial Year

The Finance Department has implemented the new enterprise resourcing system (Sage Evolution) that integrates the financial accounting reporting and Supply Chain Management (SCM) processes. A revision of the Finance Policy was performed in the period under review to address control deficiencies.


The Finance Department is to revise its Standard Operating Procedures (SOPs) and align them with the Policy.





Supply Chain Management Services KPIs, Planned Targets and Actual Achievements

Supply Chain Management Services


Indicator

Actual Achievement

2015/16


Actual Achievement2016/17



2016/17


Status

To provide a compliant internal control and sound financial management serviceDevelopment, implementation and monitoring of action plans to address audit findings (80% reduction)

n/a Development, implementation and monitoring of action plans to address audit findings (80% reduction).

Achieved

87% of audit findings have been addressed.

None

Complete and accurate Fixed Assets Register (FAR) at the end of the year

n/a Complete and accurate FAR at the end of the year.

Achieved

A complete and accurate asset register is maintained.

None

0% unauthorised and irregular expenditure and 80% reduction in fruitless and wasteful expenditure year on year

n/a 0% unauthorised and irregular expenditure and 80% reduction in fruitless and wasteful expenditure year on year.

Not Achieved

25% unauthorised and irregular expenditure incurred year on year.54% increase in fruitless and wasteful expenditure year on year.

25% unauthorised and irregular expenditure.54% fruitless and wasteful expenditure.

Continuous monitoring of expenditure and plan workshop for staff on compliance with SCM policies.

Overview of the Supply Chain Management Services Department’s Performance for the 2016/17 Financial Year

An asset register is maintained through the Sage Evolution system and manually through Microsoft Excel. Accurate monthly depreciation calculations and movements are maintained and monitored. Asset verification and impairment testing performed at year end have not revealed any indications of impairment. The SCM Department maintains a reliable monthly procurement plan aligned with the budget for 2016/2017. The introduction of supplier database monitoring through Microsoft Excel is proving ineffective as non-compliant suppliers have been utilised to procure goods and services for the Council. Contract management was not effective during the period under review, resulting in contracts running beyond their terms. The monthly reports on commitments and unauthorised, irregular, fruitless and wasteful expenditure are compiled and monitored.


The SCM Department has revised its SOPs. Management will enforce and monitor the implementation of controls guided by the SOPs and Policies.


None.




3.5 Programme 5: Executive Services

Purpose

The purpose of Programme 5 is to ensure the Council meets its strategic vision which rests on the pillars of its mandate to maintain labour peace in public education and extends to the attainment of quality education in public schools, through stakeholder collaboration and support of initiatives to restore the image of the teaching profession.

Sub-Programmes:

• Strategic and Corporate Governance

• Internal Audit and Compliance

• Risk Management

Strategic Objectives:

• To add value through assessing the tone and risk management culture of the organisation, as well as evaluating and

reporting on the effectiveness and efficiency of the implementation of management policies.

• To instil fiscal discipline, sound corporate governance and compliance with the regulatory framework.


Executive Services


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status

Approved three-year rolling plan and annual audit plan

n/a Three-year Internal Audit rolling plan and risk-based annual audit plan presented to the Audit Committee.

Achieved

FY2016/17 Internal Audit Coverage Plan was presented and approved by the Audit Committee in the first quarter Audit Committee meeting.

None

Number of risk-based projects audited as per the Internal Audit Coverage Plan

Achieved

All 25 planned audit engagements were performed.

Audit 75% of risk-based projects.

Achieved

100% of the FY2016/17 Internal Audit Annual Work Plan was completed, and final reports were issued.

+25%



Executive Services


Indicator

Actual Achievement

2015/16


Actual Achievement

2016/17



2016/17


Status

Monitor the adequacy of controls designed to ensure that risks are effectively managed

Achieved

A Risk Assessment Report and three Risk Management Reports were presented to the Audit Committee.

Produce a Risk Management Report.

Achieved

Four Risk Management Reports were produced and tabled at the Audit Committee meetings.

None

Monitor the regulatory and business compliance universe and issue a progress report

Achieved

The 2015/16 Compliance Register and three Compliance Management Reports were presented to the Audit Committee.

Produce a Compliance Management Report.

Achieved

Four compliance management checklists were produced and tabled at Audit Committee meetings.

None

Overview of the Executive Services Department’s Performance for the 2016/17 Financial Year

The internal audit function prepared the following in consultation with and for approval by the Audit Committee:

o A rolling three-year strategic internal audit plan based on its assessment of key areas of risk for the Council, having regard for its current operations, those proposed in its strategic plan and its risk management strategy; and

o An annual internal audit plan for the first year of the rolling three-year strategic internal audit plan.

The function presented quarterly reports to the Audit Committee detailing its performance against the annual internal audit plan to allow effective monitoring and possible intervention.

The function compiled the FY2017/18 Risk Assessment Report, and Strategic and Operational Risk Registers.

The function developed a combined assurance framework, the Executive Committee Charter, the Human Resources Sub-Committee Charter and Finance Sub-Committee Charter.

The function performed and issued 20 Assurance Work Audit Reports and provided control advice and information to ensure appropriate controls are included where processes are changed, and through the specific items and management requests, in consultation with management.





Not applicable.




2016/17



Financial Management and Compliance Services R5,534 R4,467 R1,067

Total R5,534 R4,467 R1,067



4. SUMMARY OF FINANCIAL INFORMATION

4.1 Revenue Collection

2016/17 2015/16

Source of revenue

EstimateActual amount

collected(Over)/Under

CollectionEstimate

Actual amount collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000

Levies 48,000.00 48,837 (837) 48,000 48,790 (790)

Total 48,000.00 48,837 (837) 48,000 48,790 (790)

5. PROGRAMME EXPENDITURE

2016/17 2015/16

Programme name Budget Actual

Expenditure (Over)/Under Expenditure

BudgetActual

ExpenditureOver)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Dispute Management Services 13,139 12,571 568 14,474 14,131 343

Collective Bargaining Services 31,564 24,740 6,824 36,807 26,524 10,283

Executive Services 5,535 4,467 1,068 5,515 5,889 (374)

Corporate Services 19,010 17,552 1,458 17,793 15,606 2,187

Capital Expenditure 4,030 2,143 1,887 25,358 - 25,358

Total 73,278 61,473 11,805 99,947 62,150 37,797

5.1. Capital investment, maintenance and asset management planNot applicable


Not applicable


Not applicable



in public education


Part C Governance



1. INTRODUCTIONThe overall performance of the Council for the 2016/17 financial period improved significantly compared to the 2015/16 period, particularly in terms of DMS, Collective Bargaining at the provincial level, as well as support services. In terms of collective bargaining at the national level, long outstanding items on the agenda of the Council were also addressed.

In terms of DMS, the Council implemented a number of measures to deal with disputes in a proactive manner, including the recruitment of interpreters, intermediaries and Commissioners, so as to ensure speedy resolution of cases involving a child as a victim or witness. Training was also provided for Commissioners on special disputes.

2. THE ACCOUNTING AUTHORITY

Committees

Committee No. of meetings held No. of members Name of members

EXCO 9 10 DBEMr A W KutumelaMs M MogaleMr S TshabalalaMr S FakerMs K J Moshotle

SADTUMr M MalulekeMr M GaloraleMs O Sibiya

CTU-ATUMr C ScorgieMr D Lerm

ChairpersonAdv L Bono

Audit Committee 6 5 Ms T SihlabaMr B MewuMr SA Ngobeni (Chairperson)Mr M MalulekeMr N Maluleka

Finance Sub-Committee 5 8 DBEMr H NgwenyaMs M MogaleMr A W Kutumela

SADTUMr T R OliphantMr S R MogapiMr M Jacobs

CTU-ATUMr D LermMr M Moloi

ChairpersonMr L Cele




Committee No. of meetings held No. of members Name of members

Human Resources Sub-Committee

6 8 DBEMs L MundayMr N NgcoboMr D Phango

SADTUMr B A MohoneMr S ThwalaMs K Frank

CTU-ATUMr A V DlaminiMr M Moloi

ChairpersonMr D Lerm

Legal Sub-Committee 2 9 DBEMs P MasekelaMr S TshabalalaMr S FakerMr A W Kutumela

SADTUMr T SematleMr O SibiyaMr M Ndouvhada

CTU-ATUMs C LotteringMr J vd Hoven

ChairpersonAdv K J Moshotle



3. RISK MANAGEMENTThe EXCO has assigned oversight of the ELRC’s risk management function to the Audit Committee. Reviews of the Council’s risk management are performed by the Council’s Operational Risk Management Committee which reports to the Audit Committee through the Internal Auditor. Strategic risks, ranked in relation to a scale from catastrophic to negligible, are presented quarterly to the Audit Committee and are then reported to and considered by the EXCO.

Risk Management is recognised as an integral part of sound organisational management. The ELRC has a Risk Management Policy and Framework in place and is also guided by the King III Report on Corporate Governance principles and practices.

In alignment with the King III Report, the Audit Committee has satisfied itself that the following areas have been appropriately addressed:

• Financial reporting risk;

• Internal financial controls;

• Fraud risk as it relates to financial reporting; and

• IT risk as it relates to financial reporting.

The Risk Heat Map indicated that, while internal controls are adequately and effectively monitored, there is room for improvement in ensuring that risks are kept within acceptable levels.

4. INTERNAL CONTROLInternal controls comprise of systematic measures, policies, procedures and business rules adopted by management to provide reasonable assurance in safeguarding assets, prevention and detection of error, accuracy and completeness of accounting records, and the reliability of Annual Financial Statements of the Council.

The responsibility for the systems of internal financial and operational control rests with EXCO and has been delegated to the Audit Committee. The ELRC’s principles on compliance management, sound operational and financial practices, ethical behaviour and the risk management strategy lay the foundation for an effective internal control environment.

The Audit Committee reviews the internal control process and its effectiveness, including quarterly financial reporting, on an annual basis to ensure it remains robust in identifying control weaknesses, and to comply with internal audit requirements. The ELRC is focused on maintaining a sound system of internal control, based on the Council’s policies, procedures and guidelines, in all operations.

During the year, management revisited the External Audit Management Report, which resulted in the implementation of corrective management plans. Management has adequately responded to the External Audit Report.

The internal audit function is governed by the Internal Audit Charter, as approved by the Audit Committee. The internal audit function serves management and the Executive Authority by performing independent evaluations of the adequacy and effectiveness of the Council’s internal controls, financial reporting mechanisms and records, information systems and operations.

The internal audit unit function conducted audits to monitor and assess the internal controls across various functions through continuous evaluations, and to ensure the implemented internal control system is effective, as intended by management. The results indicated that controls and/or management activities are in place with significant opportunities for improvement.

The Audit Committee:

• Monitored the identification and correction of weaknesses and breakdowns of systems and internal controls;




• Monitored the adequacy and reliability of management information and the efficiency of management information

systems;

• Reviewed quarterly and final financial statements and reporting for proper and complete disclosure of timely, reliable

and consistent information;

• Evaluated the appropriateness, adequacy and efficiency of accounting policies and procedures, compliance with

International Financial Reporting Standards (IFRS), any related changes discussed and resolved, and any significant

or unusual accounting issues, on an ongoing basis; and

• Reported on the effectiveness of the company’s internal reporting controls to EXCO.

5. AUDIT COMMITTEEThe Audit Committee of the ELRC is independent and fulfils a vital role in corporate governance by, among others, ensuring the integrity of integrated reporting, internal financial controls and the management of risk.

The Committee has adopted appropriate formal terms of reference as its Audit Committee Charter, which have been approved by EXCO. The Committee has also regulated its affairs in compliance with the Charter and has discharged its responsibilities as contained therein. The Audit Committee is an advisory committee of the Council operating with an independent and objective stance.

The Audit Committee met six times during the period under review (four normal meetings and two special meetings). These meetings were attended by the General Secretary or her delegate, the Internal Auditor, the Chief Financial Officer (CFO), Senior Management, and representatives from the external auditors.

The Audit Committee reports that it has operated and performed its oversight responsibilities independently and objectively, in compliance with the Audit Committee Charter and ELRC constitution.

Internal audit independently reviews the risks and control processes operated by management. It carries out independent audits in accordance with an internal audit plan which is reviewed and agreed upon in consolation with the Audit Committee at the beginning of each financial year. The Internal Audit Plan agenda is driven by the ELRC’s assessment of its principal risks and uncertainties. The Internal Auditor has a responsibility to the Audit Committee and has direct access to members of the Audit Committee and the Chairman of the Audit Committee. The Internal Auditor attended six Audit Committee meetings during the year. At these meetings, the Audit Committee considered and discussed various committee reports, internal audit plans, and internal audit reports and internal audit findings

During the year, the Audit Committee Chairperson held discussions with the Internal Auditor without the presence of management as well as outside of the formal committee processes. The internal audit works across the Council with responsibility for reviewing, evaluating, developing and providing assurance on the adequacy of the internal control environment, operating efficiency and risk identification and management across all of the Council’s operations, while reporting back to the Audit Committee on findings.

The Audit Committee assessed the effectiveness of the ELRC’s internal audit function during the year, finding that sufficient work had been undertaken providing effective assurance around financial processes and controls in relation to the work performed in the year.

The Audit Committee notes that no cost-effective system can preclude all errors and irregularities and, therefore, the Council’s system of internal controls provides reasonable, but not absolute, assurance against material misstatement or loss.

6. COMPLIANCE WITH LAWS AND REGULATIONSThe Audit Committee is responsible for the oversight of the Council’s compliance activities, under which internal audit reports to the Committee on each quarter.



7. FRAUD AND CORRUPTION

A Fraud Prevention Plan (FPP) for the ELRC has been revised and approved by the EXCO during the fourth quarter risk assessment process. A Fraud and Corruption Policy statement exists and is signed by the Accounting Officer. The Council developed a Fraud Risk Register for monitoring.

A tasks and responsibilities matrix for implementation of the FPP has been developed with components and areas.

8. MINIMISING CONFLICTS OF INTERESTAt the beginning of each calendar year, all staff members are required to sign a declaration form on conflicts of interest.

9. POLICY REGULATORY FRAMEWORKIn compliance with the Council’s Policies and Procedures, the focus was placed on providing different workshops to employees in addressing issues of Risk Management, Fraud Prevention and Compliance Management.

Furthermore, employees are expected to comply with the policy principles and are encouraged to report suspected fraudulent behaviour by fellow colleagues anonymously.

An annual submission of the Workplace Skills Plan (WSP) and the Annual Training Report (ATR) to the Education Training and Development Practices Sector Education and Training Authority (ETDP SETA) is yielding good results in that Council has received a grant for the training provided to staff.

10. OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENTThe Safety, Health and Environment (SHE) Committee has effectively monitored the health and safety requirements and met four times in the financial reporting year. To ensure compliance with good governance, quarterly reports were submitted to the Audit Committee.

11. SOCIAL RESPONSIBILITYStaff members are encouraged to participate in social responsibility activities. During the period under review, donations were made to Dimphonyana Tsa Lapeng Home in Olievenhoutbosch, Centurion on 18 July 2016. Staff also assisted in painting the home on the day.




12. AUDIT COMMITTEE REPORT

IntroductionWe are pleased to present our report for the financial year ended 31 March 2017.

The Audit Committee commends the management and staff of the ELRC for the efforts demonstrated during the period under review to ensure improvement in the performance of the Council.

BackgroundIn line with the Audit Committee Charter and King III, the Audit Committee is an independent advisory body that advises the Executive Committee, office bearers, the Accounting Officer, Council and staff of the ELRC.

It is expected on a quarterly basis for the Audit Committee to review and advise the Executive Committee on matters relating to the adequacy and effectiveness of risk management, control and governance.

Audit Committee Members AttendanceThe Audit Committee consists of the members listed hereunder and meets at least four times per annum, as per its approved terms of reference. During the current year, six meetings were held.

Name of member Designation Date of Appointment Meetings Attended

Ms T Moeeng Chairperson until end July 2016 August 2012 4

Mr SA Ngobeni Chairperson (Member)August 2016(June 2013)

6

Mr M Maluleke Member August 2012 3

Mr M Mahonga Member until end July 2016 August 2012 4

Mr N Maluleka Member August 2012 1

Mr B Mbewu Member August 2016 2

Ms T Sihlaba Member August 2016 1

Attendance of Audit Committee Meetings by OfficialsThe meetings held during the year under review were in line with the Audit Committee Charter. Intended objectives were met, and attendance was satisfactorily.

The Audit Committee commends management for the participation, cooperation, commitment and assistance shown to the Audit Committee, and on logistical arrangements and coordination of the Audit Committee meetings.

Audit Committee ResponsibilityThe Audit Committee fulfilled their responsibility of adequate and effective risk management, control and governance, and of the economy, efficiency and effectiveness (i.e. value for money (VFM)) in relation to the ELRC’s activities.

The Committee adopted appropriate formal terms of reference as its Audit Committee Charter, which was approved by the EXCO.

The Committee also regulated its affairs in compliance with the Charter and discharged its responsibilities as contained therein. The Audit Committee is an advisory committee of the Council operating with an independent and objective stance.

The Audit Committee met six times during the period under review (four normal meetings and two special meetings).

These meetings were attended by the General Secretary or her delegate, the Internal Auditor; the Chief Financial Officer; Senior Management and representatives from the external auditors.



The Audit Committee reports that it operated and performed its oversight responsibilities independently and objectively in compliance with the Audit Committee Charter and the ELRC constitution.

Risk Management and Compliance Process

Internal ControlAs part of the overall management of risk, management implemented a system of internal control. The internal control system provides the Executive Committee with reasonable assurance that the ELRC is operated consistently with:

• the strategy as determined by the Council;

• the business objectives;

• the policies and processes; and

• the laws and regulations that apply to the ELRC. • The system aims to prevent and detect any significant risk from materialising and to mitigate any adverse consequences

thereof.

The Executive Committee is supported by the assurance providers within the ELRC, which includes internal audit, risk management and compliance functions. The functions are reviewed regularly as agreed with the Executive Committee.

Control opinionThe Audit Committee reviewed the effectiveness of controls principally through a process of internal audit reports. Consideration was given to other relevant input, including combined assurance reports, reports from internal and external auditors; compliance and the enterprise risk management process.

The Audit Committee is of the opinion that internal control is functional and effective.

Internal financial controlsInternal financial controls are based on established policies and procedures. Management is responsible for implementing internal financial controls, ensuring employees are suitably qualified, that there is appropriate segregation of duties, and that appropriate reviews are performed.

The internal financial controls in the period under review were documented and tested. Significant deficiencies were found, interacted with and recommendations and resolutions were made. Results of this review were reported to the Executive Committee.

Internal assurance providersThe main internal independent assurance provider in the ELRC is the Internal Audit unit. Internal Audit provides objective and independent assurance to management and the Executive Committee, through the Audit Committee, on risk management, control and governance processes. Internal Audit is governed by an Internal Audit Charter, approved by the Executive Committee, and is reviewed annually. The Charter defines the purpose, authority and responsibility of the function.

The head of Internal Audit provides a report at each Audit Committee meeting and reports to the Chairperson of the Audit Committee and administratively reports to the General Secretary.

Internal Audit conducts a robust risk-based planning process, which incorporates various criteria to prioritise and classify the audited areas, processes and functions in the ELRC. All material business units and audited areas are included in the audit universe on a three-year cycle.

The Annual Internal Audit Plan is reviewed regularly to ensure it remains relevant and responsive to changes in the operating environment.

Internal Audit systematically analysed and evaluated the significant risks and associated audit controls. In terms of their agreed scope, they have not identified any material breakdown in internal controls. They also indicated that controls and/




or management activities are in place with significant opportunities for improvement and these weaknesses put some of the system objectives at risk.

The unit followed up on the implementation of the action plans to address weaknesses and reported progress on the implementation of the action plans to the Audit Committee.

The Internal audit unit also performed reviews on compliance with the applicable laws and regulations, financial policies and prescripts in the form of audit engagements and compliance checklists on a quarterly basis.

The Internal Audit unit is functional and effective.

Risk ManagementThe Executive Committee remains accountable to the Council in ensuring that suitable risk management and internal control processes are embedded and integrated into the strategic and operational management of the ELRC.

Risk management policies and processes consider the scope of the ELRC’s business. The policies form part of the ELRC’s governance framework and encompasses the totality of strategies, policies and procedures for identifying, measuring, monitoring, managing and reporting all material risks to which the ELRC may be exposed.

The Risk Management Committee conducts a quarterly analysis of the top strategic risks. Group workshops and interviews with management were conducted to assist in gathering the necessary information.

A process followed by management to identify risk mitigation ways occurred by either: • Reducing or increasing the likelihood of the risk impacting on the Council • Reducing or increasing the consequences if the risk were to occur, or • A combination of the above approaches.

The Audit Committee monitors specific risks with overall oversight and review provided by the Risk Management Committee.

The risk management process is applied consistently throughout the organisation. Based on independent reviews and assessments presented, the Audit Committee is confident that the risk management programme is adequate in identifying current and emerging risks and ensuring that these risks are managed appropriately.

The Audit Committee is satisfied with the maturity level of the risk management processes.

In-Year Management and Quarterly ReportManagement has submitted quarterly reports to the Executive Committee and the Audit Committee has reviewed such reports.

The Audit Committee is satisfied with the quality of the in-year and quarterly reporting of non-financial performance information.

However, there is room for improvement for the financial reporting information as far as the quality of the financial reports are concerned.

Evaluation of Financial StatementsThe Audit Committee reviewed the financial statements of the ELRC and is satisfied that they comply in all material respects with IFRS. During the period under review the Committee:

• Reviewed and discussed the audited Annual Financial Statements with the external auditors, the General Secretary

and the Chief Financial Officer.

• Reviewed the external auditors’ report and management’s response thereto.

• Reviewed any significant adjustments resulting from external audit queries and accepted unadjusted audit differences.

• Reviewed areas of significant judgements and estimates in the Annual Financial Statements.



Annual ReportThe Audit Committee has reviewed the annual report of the ELRC and is satisfied that it complies in all material respects with the applicable laws and regulations, as established by the ELRC.

The Independent Auditor Report and Management ReportThe management report of the External Auditor was reviewed.

The external auditors have tested the systems of internal financial control to the extent that they intended to place reliance on them in forming their audit opinion on the accuracy of the figures in the financial statements.

There were significant issues raised following this year’s review of key controls, there was effort from management to implement the agreed corrective action plans. Despite these control inadequacies, the Audit Committee is of the view that the system of internal control on financial statements was satisfactory.

The Audit Committee concur and accept the external auditor’s observations and conclusion, and therefore recommend the adoption of the reports.

Conclusion Having considered, analysed, reviewed and debated information provided by management, Internal Audit and External Audit, the committee confirmed that:

• The internal controls of the ELRC were effective in all material aspects throughout the year under review.

• These controls ensured that the ELRC’s assets had been safeguarded.

• Proper accounting records had been maintained.

• Resources had been utilised efficiently.

• The skills, independence, audit plan, reporting and overall performance of the external auditors were acceptable.

Following our review of the financial statements for the year ended 31 March 2017, we are of the opinion that they comply with the relevant provisions of the IFRS, and that they fairly present the results of the operations, cash flow and financial position of the ELRC.

The Audit Committee has complied with all the King III principles.

The Audit Committee is satisfied that it has complied in all material respects, with its legal, regulatory and other responsibilities.

The Audit Committee recommend that special attention be given to the Finance unit. This is in the light of issues raised by the Audit Committee, Internal Audit and External Audit.

We hereby recommend the adoption of the audited Financial Statements and the Annual Report by the Executive Committee.

On behalf of the Audit Committee

_________________Mr SAB NgobeniChairperson of the Audit CommitteeDate: 15 August 2017



in public education


Part D Human Resources

Management



1. INTRODUCTION

The Human Resources Report summarises the employment relations activities of the ELRC during the period 1 April 2016 to 31 March 2017. Human Resources issues include recruitment, resignations (turnover), employee wellness, further studies and training and development, performance management, and labour relations.

The Council had 58 approved positions and reviewed the organogram, as there was a need for personnel in the Internal Audit Department and Corporate Services (IT section).

1.1 Recruitment and AppointmentsThe Council has 58 positions with a staff complement of 53 employees and five vacant positions.

The vacant positions will be filled in the new financial year, 2017/18.

1.2. Industrial RelationsOne employee was charged for a misconduct and one for poor performance.

Three employees’ probation was not confirmed due to incapacity.

The National Education Health and Allied Workers’ Union (NEHAWU) is an officially recognised union by the Council. However, it must be noted that Council has not received the Collective Agreement.

1.3 Further Studies and Training DevelopmentA total of 56 employees attended training during the financial year 2016/17, including a Risk Management Workshop, Performance Management Workshop, Payroll Management, Sage Pastel Evolution VIP Payroll, Compliance Management Workshop, Fraud Prevention, Sage VIP System – Personnel Management, Sage VIP System – Performance Management, Sage VIP System – People Basic, Sage VIP System – Equity Management, and Sage VIP System – Employee Self Service

1.4 Employee WellnessSeven wellness activities were conducted during the 2016/17 fiscal year, and they are as follows:

• 16 Days of Activism Against Women and Child Abuse

• World Aids Day

• Youth Day

• Spring/Casual Day

• Heritage Day

• Employee Wellness

• Valentine’s Day

1.5 Performance ManagementThe Annual Performance Assessments were successfully conducted, and the process of performance rewards will be finalised in the first quarter of the 2017/18 financial year.

1.6 Resignations and RetirementsEight employees resigned during the 2016/17 financial year due to better remuneration offered by other employers in the market and career progression.




1.7 Highlights

• Only five positions are vacant.

• The Council received the grant to the value of R129 000 from ETDP SETA for training and development purposes.

2. HUMAN RESOURCE OVERSIGHT STATISTICS

Personnel expenditure for the financial year 2016/17.

Personnel cost by programme

Programme Total Expenditure

for the entity (R’000)

Personnel Expenditure

(R’000)

Personnel exp. as a % of total exp.

(R’000)No. of employees

Average personnel cost per employee

(R’000)

Collective Bargaining 24,740 10,058 41% 21 479

Dispute Resolution 12,571 3,308 26% 7 473

Corporate Services 19,695 9,330 47% 24 389

Executive Services 4,467 3,787 85% 4 947

Total 61,473 26,483 43% 56

Personnel cost by salary band

Level Personnel Expenditure (R’000)

% of personnel exp. to total personnel cost

(R’000)No. of employees Average personnel cost

per employee (R’000)

Top Management 2,500 9% 2 1,250

Senior Management 3,271 12% 4 818

Professionally qualified 10,182 38% 16 636

Skilled 9,488 36% 28 339

Semi-skilled 572 2% 2 286

Unskilled 470 2% 4 118

Total 26,483 100% 56

Performance Rewards

Level Performance Rewards (R’000) Employee Cost (R’000) % of performance rewards to total personnel cost (R’000)

Top Management 101 2,500 4%

Senior Management 221 3,271 7%

Professionally qualified 346 10,182 3%

Skilled 304 9,488 3%

Semi-skilled 28 572 5%

Unskilled 22 470 5%

Total 1,022 26,483 100%



Training Costs

Programme Training Expenditure(R’000)

Training expenditure as a % of personnel cost

No. of employees trained

Average training cost per employee

(R’000)

Collective Bargaining 15 5% 1 15

Dispute Resolution - 0% 0 -

Corporate Services 214 77% 14 15

Executive Services 49 18% 3 16

Total 278 100% 18

Employment and vacancies

Employment levels per programme

Programme2015/2016 2016/2017 2016/2017 2016/2017 % of

VacanciesNo. of employees Approved Posts No. of Employees Vacancies

Executive Office 4 5 4 1 25%

Collective Bargaining 22 22 21 1 5%

Corporate Services 24 24 21 3 14%

Dispute Resolution & Prevention 7 7 7 0 0%

Total 57 58 53 5 9%

Employment and vacancies per level

Programme2015/16 2016/2017 2016/2017 2015/2016 % of

VacanciesNo. of employees Approved Posts No. of Employees Vacancies

Top Management 2 2 2 0 0%

Senior Management 4 4 4 0 0%

Professionally qualified 17 17 15 2 13%

Skilled 28 29 26 3 12%

Semi-skilled 2 2 2 0 0%

Unskilled 4 4 4 0 0%

Total 57 58 53 5 9%

Employment changes

Salary BandEmployment at

beginning of period

Appointments Terminations Transfers Employment at end of the period

Top Management 2 0 0 0 2

Senior Management 4 1 1 0 4

Professionally qualified 17 4 5 0 15

Skilled 28 4 5 1 26

Semi-skilled 2 0 0 0 2

Unskilled 4 0 0 0 4

Total 57 9 11 1 53




Reasons for staff leaving

Reason Number % of total no. of staff leaving

Terminations 11 21%

Total 11 21%

Labour Relations: Misconduct and disciplinary action

Nature of disciplinary action Number

Grievance 0

Incapacity 1

Disciplinary 0

Dismissal 1

Total 2

Equity Target and Employment Equity Status

Levels

MALE

African Coloured Indian White

Current Target Current Target Current Target Current Target

Top Management 0 0 0 0 0 0 0 0

Senior Management 2 0 0 0 0 0 0 0

Professionally qualified 8 0 0 0 1 0 0 0

Skilled 12 0 0 0 0 0 0 0

Semi-skilled 2 0 0 0 0 0 0 0

Unskilled 3 0 0 0 0 0 0 0

Total 27 0 0 0 1 0 0 0

Levels

FEMALE

African Coloured Indian White

Current Target Current Target Current Target Current Target

Top Management 2 0 0 0 0 0 0 0

Senior Management 2 0 0 0 0 0 0 0

Professionally qualified 3 0 2 0 0 0 1 0

Skilled 11 0 1 0 1 0 1 0

Semi-skilled 0 0 0 0 0 0 0 0

Unskilled 1 0 0 0 0 0 0 0

Total 19 0 3 0 1 0 2 0



Levels

DISABLED STAFF

Male Female

Current Target Current Target

Top Management 0 0 0 0

Senior Management 0 0 0 0

Professionally qualified 0 0 0 0

Skilled 0 0 1 0

Semi-skilled 0 0 0 0

Unskilled 1 0 0 0

Total 1 0 1 0



in public education


Part E Financial Information



Building 1 | Midrand Business Park 563 Old Pretoria Main Road

MIDRAND | 1685

PO Box 8468 | Halfway House MIDRAND | 1685

Tel: +27 11 254 0800 | Fax: +27 11 805 0168

E-mail: [email protected] www.ngubane.co.za

Directors: TB Nkomozephi, E Sibanda, HGS Mpungose, N Ravele, SM Jogee, ET Chapanduka, MN Govender, DA Mbatha, MO Mathelemusa Reg.No. 2010/016757/21

Report of the External Auditor

Independent Auditor’s Report to the members of Education Labour Relations Council

Opinion

1. We have audited the Annual Financial Statements of Education Labour Relations Council, which comprise the Statement of Financial Position as at 31 March 2017, the Statement of Financial Performance, Statement of Changes in Net Assets and Statement of Cash Flows for the year then ended, and notes to the Financial Statements, including a summary of significant accounting policies.

2. In our opinion, the Annual Financial Statements present fairly, in all material respects, the financial position of Education Labour Relations Council as at 31 March 2017, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards for Small Medium-sized Entities (IFRS for SMEs) and the requirements of section 53(1) of the Labour Relations Act (LRA).

3. Nothing has come to our attention to indicate that the Council has not complied with the provisions relating to financial matters in their constitution.

Basis for Opinion

4. We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the annual financial statements section of our report.

5. We are independent of the Education Labour Relations Council in accordance with the Independent Regulatory Board for Auditors’ Code of professional conduct for registered auditors (IRBA code) and other independence requirements applicable to performing audits of the financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA code is consistent with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (parts A and B).

6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.



Accounting Authority’s Responsibility for the Financial Statements

7. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) and requirements of the Labour Relations Act, and for such internal control as the committee determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

Auditor’s Responsibility

8. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

9. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

10. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Regulatory matters

11. We performed procedures to obtain evidence that the entity had complied with applicable legislation regarding financial matters, financial management and other related matters. We did not identify any instances of material non-compliance with specific matters in the key applicable laws and regulations.

Annual Financial Statements

Going concern

12. The annual financial statements have been prepared on the going concern assumption.

13. Management is of the opinion that Education Labour Relations Council will be a going concern for the next 12 months.

14. We do not have any reason to question management’s view in respect of the entity’s ability to continue as a going concern and are satisfied that this continues to be the appropriate basis for the preparation of the annual financial statements.

_________________________________Ngubane & Co (JHB) Inc.Registered AuditorsDirector: M MathelemusaRegistered Auditor14 August 2017


EDUCATION LABOUR RELATIONS COUNCIL

(Registration number LR2/6/6/110)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017


Financial Statements for the year ended 31 March 2017


Index PageStatement of Responsibility for the Annual Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 – 139

Notes to the Annual Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 – 160

The following supplementary information does not form part of the financial statements and is unaudited:

Statement of Comparison of Budget and Actual Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 – 163

The financial statements set out on pages 130 to 163, which have been prepared on the going concern basis, were approved on 31 August 2017 and were signed on its behalf by:

_________________Ms NO FocaAccounting Officer

_________________Adv. L BonoChairperson of Council




STATEMENT OF RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

The Accounting Authority is required to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report.

It is their responsibility to ensure that the financial statements fairly present the state of affairs of the entity as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with the International Financial Reporting Standard for Small and Medium-sized Entities. The external auditor is engaged to express an independent opinion on the financial statements.

The financial statements are prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. The financial statements have been prepared on the going concern basis.

The Accounting Authority is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the annual financial statements.

In my opinion, the financial statements fairly reflect the operations of the entity for the financial year ended 31 March 2017.

The Education Labour Relations Council’s annual financial statements for the year ended 31 March 2017 have been audited by the external auditors and their report is presented on page 125.

The Annual Financial Statements of the entity set out on page 130 to page 163 have been approved.

_________________Ms NO FocaAccounting Officer

_________________Adv. L BonoChairperson of Council




STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017

Notes 2017 2016

R R

Assets

Non-Current Assets 31,708,785 32,556,322

Property and equipment 2 30,883,231 32,084,675

Intangible assets 3 825,554 471,647

Current Assets121,110,794 119,170,619

Trade and other receivables 6 341,237 827,183

Cash and cash equivalents 7 120,769,557 118,343,436

Total Assets 152,819,579 151,726,941

Equity and Liabilities

Equity

Accumulated surplus 125,661,843 121,753,525

Liabilities

Current Liabilities 27,157,736 29,973,416

Trade and other payables 8 5,615,243 7,714,139

Operating lease liability 4 - 82,384

Provisions 10 2,220,804 1,875,508

Shop stewards accrual 9 19,321,689 20,301,385

Total Equity and Liabilities 152,819,579 151,726,941




STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2017

Notes 2017 2016

R R

Revenue 11 48,837,490 48,790,093

Other Income 12 9,299,112 7,562,989

Operating Expenditure 26 (54,225,739) (55,797,068)

Operating Surplus (deficit) 3,910,863 (556,014)

Interest and penalties (2,544) (670,356)

Comprehensive surplus (deficit) for the year 3,908,319 (114,342)




STATEMENT OF CHANGES IN EQUITY AS AT 31 MARCH 2017

Accumulated surplus

R

Total equity

R

Balance at 01 April 2015 121,867,867 121,867,867

Comprehensive deficit for the year (114,342) (114,342)

Balance at 01 April 2016 121,753,525 121,753,525

Comprehensive surplus for the year 3,908,319 3,908,319

Balance at 31 March 2017 125,661,843 125,661,843




STATEMENT OF CASH FLOWS AS AT 31 MARCH 2017

Notes 2017 2016

R R

Cash flows from operating activities

Net cash utilised in operating activities (3,750,436) (943,969)

Cash receipts from customers 48,829,404 48,852,681

Cash paid to suppliers and employees (52,577,296) (49,126,294)

Cash used in operations 17 (3,747,892) (273,613)

Interest and Penalties (2,544) (670,356)

Cash flows from investing activities

Net cash generated from (utilised in) investing activities 6,176,557 (17,235,531)

Purchase of property and equipment 2

(1,449,906) (24,316,251)

Purchase of intangible assets 3 (744,593) (398,436)

Interest income 12 8,371,056 7,479,156

Increase (decrease) in cash and cash equivalents for the year 2,426,121 (18,179,500)

Cash and cash equivalents at the beginning of the year 118,343,436 136,522,936

Cash and cash equivalents at the end of the year 7 120,769,557 118,343,436




ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2017

1. Presentation of financial statements The financial statements have been prepared in accordance with the International Financial Reporting Standards for Small and Mediumsized Entities (IFRS for SME’s) and the Labour Relations Act, 66 of 1995 as amended. The financial statements have been prepared on the historical cost basis and incorporate the principal accounting policies set out below. They are presented in South African Rands.

These accounting policies have been amended to be compliant with the reporting framework of IFRS for SME’s.

1.1 Significant judgements and sources of estimation uncertainty

Key sources of estimation uncertainty

Useful lives of property and equipment

The council reviews the estimated useful lives of property and equipment when changing circumstances indicate that they may have changed since the most recent reporting date.

Provisions

Provisions are inherently based on assumptions and estimates using the best information available. Additional disclosure of these estimates of provisions are included in note 10 Provisions.

1.2 Property and equipmentProperty and equipment are tangible items that:

• are held for use in the production or supply of goods or services, for rental to others or for administrative purposes;

and

• are expected to be used during more than one period.

Property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses.

Cost includes all costs incurred to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Costs include costs incurred initially to acquire or construct an item of property and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property and equipment, the carrying amount of the replaced part is derecognised.

Depreciation is provided using the straightline method to write down the cost, less estimated residual value over the useful life of the property and equipment, which is as follows:




ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2017 (CONT.)

Item Depreciation method Average useful life in years

Buildings Straight line 25

Lifts Straight line 25

Generators Straight line 25

Furniture and fittings Straight line 10

Motor vehicles Straight line 7

Office equipment Straight line 8

Computer equipment Straight line 3

Leasehold improvements Straight line 5

The residual value, depreciation method and useful life of each asset are reviewed at each reporting date if there are indicators present that there has been a significant change from the previous estimate.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss in the period.

1.3 Intangible assets Intangible assets are initially recognised at cost and subsequently at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Depreciation method Average useful life in years

Computer software Straight line 3

The residual value, amortisation period and amortisation method for intangible assets are reassessed when there is an indication that there is a change from the previous estimate.

1.4 Financial instruments Initial measurement

Financial instruments are initially measured at the transaction price (including transaction costs except in the initial measurement of financial assets and liabilities that are measured at fair value through profit or loss) unless the arrangement constitutes, in effect, a financing transaction in which case it is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial instruments at amortised cost

These include loans, trade receivables and trade payables. Those debt instruments which meet the criteria in section 11.8(b) of the standard, are subsequently measured at amortised cost using the effective interest method. Debt instruments which are classified as current assets or current liabilities are measured at the undiscounted amount of the cash expected to be received or paid, unless the arrangement effectively constitutes a financing transaction.





At each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether there is any objective evidence of impairment. If there is objective evidence, the recoverable amount is estimated and compared with the carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in surplus or deficit.

1.5 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. All other leases are operating leases.

Operating leases – lessee Operating lease payments are recognised as an expense on a straightline basis over the lease term unless:

• another systematic basis is representative of the time pattern of the benefit from the leased asset, even if the

payments are not on that basis, or

• the payments are structured to increase in line with expected general inflation (based on published indices or

statistics) to compensate for the lessor’s expected inflationary cost increases.

Any contingent rents are expensed in the period they are incurred.

1.6 Impairment of assets The council assesses at each reporting date whether there is any indication that property, plant and equipment or intangible assets or goodwill may be impaired.

If there is any such indication, the recoverable amount of any affected asset (or group of related assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in surplus or deficit.

If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (or group of assets) in prior years. A reversal of impairment is recognised immediately in surplus or deficit.

1.7 Employee benefits Short-term employee benefits

The cost of shortterm employee benefits, (those payable within 12 months after the service is rendered, such as leave pay and sick leave, bonuses, and nonmonetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

Defined contribution plans

Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.





1.8 Provisions and contingencies Provisions are recognised when the council has an obligation at the reporting date as a result of a past event; it is probable that the council will be required to transfer economic benefits in settlement; and the amount of the obligation can be estimated reliably.

Provisions are measured at the present value of the amount expected to be required to settle the obligation using a rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense.

Provisions are not recognised for future operating deficit.

A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events that are beyond the control of the entity.

Alternatively, a contingent liability is a present obligation that arises from past events but is not recognised because:

• It is not probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; or

• The amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are included in the disclosure notes. The estimation of the amounts disclosed is based on the expected possible outflows of economic benefits should there be a present obligation.

Contingent assets

Contingent assets arise from unplanned or other unexpected events that are not wholly within the control of the entity and give rise to the possibility of an inflow of economic benefits or service potential to the entity.

Contingent assets are included in the disclosure notes. The estimation of the amounts disclosed is based on the expected possible inflows of economic benefits or service potential to the entity.

Contingent assets and contingent liabilities are not recognised as provisions as the recognition criteria are not complied with.

Revenue is recognised to the extent that the council has transferred the significant risks and rewards of ownership of goods to the buyer, or has rendered services under an agreement provided the amount of revenue can be measured reliably and it is probable that economic benefits associated with the transaction will flow to the council. Revenue is measured at the fair value of the consideration received or receivable, excluding sales taxes and discounts.

Interest is recognised, in profit or loss, using the effective interest rate method.





1.10 Borrowing costsBorrowing costs are recognised as an expense in the period in which they are incurred.

1.11 Changes in Estimates and Prior Period ErrorsChanges in Estimates

As a result of the uncertainties inherent in delivering services, many items in financial statements cannot be measured with precision but can only be estimated. Estimates involve judgement based on recently available, reliable information and therefore an estimate may change as new information becomes known, circumstances change, or more experience is obtained.

The entity recognises the effects of changes in accounting estimates prospectively, by including the effects in surplus or deficit in the period of the change - if the change affects that period only - or in the period of the change and future periods, if the change affects both.

Prior Period Errors

Prior period errors are omissions from and misstatements in the entity’s financial statements for one or more prior period. These errors arise from a failure to use (or misuse of) reliable information that was available when the financial statements for those periods were authorised for issue and could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements.

Such errors include the effect of mistakes in applying the accounting policy, oversight or misinterpretation of facts.

1.12 Presentation of Budget informationThe entity discloses a comparison of the budget and actual amount in the primary financial statements.

1.13 Related PartiesParties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions; or if the related party entity and another party are subject to common control.

Related parties include individuals who have significant influence over the entity, such as members of the Executive Committee (EXCO), its committees and key management personnel.

Only transactions between the entity and related parties during the reporting period and not at arm’s length or not in the ordinary course of business, as well as comparative information are disclosed in the notes to the annual financial statements.





1.14 Irregular expenditureIrregular expenditure as defined in section 1 of the Public Finance Management Act (PFMA) is expenditure other than recognised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including:

• The State Tender Board Act, 1968 (Act No.86 of 1968), or any regulations made in terms of this Act

• Any provincial legislation providing for procurement procedures in that provincial government

Irregular expenditure is accounted for in terms of the National Treasury practice note No.4 of 2008/2009, which was issued in terms of sections 76(1) to 76(4) of the PFMA.

Irregular expenditure that was incurred and identified during the period under review, which was condoned before year-end, must be disclosed appropriately in the irregular expenditure note. In such instance, no further action is required with the exception of updating the note in the financial statements.

Irregular expenditure that was incurred and identified during the period under review, which was not condoned by the National Treasury or relevant authority, must be recorded appropriately in the irregular expenditure register. If the liability for irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable by Law.

1.15 Fruitless and wasteful expenditure Fruitless and wasteful expenditure means expenditure which is made in vain and would have been avoided had reasonable care been exercised.

Where an investigation determines, a receivable will be recorded against an employee who has been found to have incurred the fruitless and wasteful expenditure. In instances where a receivable is not raised against an employee or the amount is irrecoverable, the Accounting Authority may write off the debt. Fruitless and wasteful expenditure identified is disclosed in the notes to the financial statements.




NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

FOR

THE

YEA

R EN

DED

31 M

ARCH

201

7

No

te 2

Pro

per

ty a

nd e

qui

pm

ent

2017

2016

Co

stA

ccum

ulat

ed

dep

reci

atio

n

Car

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ulat

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dep

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Car

ryin

g

Valu

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1,

000,

000

-1,

000,

000

1,00

0,00

0-

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0,00

0

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ldin

gs

32,7

64,5

42(6

,884

,807

)25

,879

,735

32,6

25,3

00(5

,578

,711

)27

,046

,589

Gen

erat

ors

599,

576

(39,

463)

560,

113

599,

576

(15,

562)

584,

014

Lifts

702,

669

(31,

243)

671,

426

702,

669

(3,2

32)

699,

437

Furn

iture

and

fitt

ings

2,59

1,21

6(1

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11,

849,

864

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73,1

71)

476,

693

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or v

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000

(163

,046

)33

5,95

449

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8,88

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1

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prov

emen

ts11

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pute

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Rec

onci

liatio

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Pro

pert

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d eq

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31 M

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Bal

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Dis

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699,

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476,

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4

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(2,6

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31




NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

FOR

THE

YEA

R EN

DED

31 M

ARCH

201

7

No

te 2

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liatio

n of

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pert

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d eq

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89

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9,57

6-

(15,

562)

584,

014

Lifts

-70

2,66

9-

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32)

699,

437

Furn

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738,

868

6,04

3(7

7,39

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90,8

21)

476,

693

Mot

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464,

400

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137

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62)

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988,

785

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866

9,15

0,43

924

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)(1

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Cha

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in e

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The

entit

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the

usef

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and

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val

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of it

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ese

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ben

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e la

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form

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hat h

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crea

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by a

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NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

(CON

T.)

No

te 3

Inta

ngib

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sset

s20

1720

16

Co

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ccum

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amo

rtis

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nC

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e1,

388,

764

(563

,210

)82

5,55

464

4,17

2(1

72,5

25)

471,

647

Reco

ncili

atio

n of

inta

ngib

le a

sset

s: 3

1 M

arch

201

7

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g B

alan

ceA

dd

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1,64

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4,59

3-

(390

,686

)82

5,55

4

Reco

ncili

atio

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inta

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le a

sset

s: 3

1 M

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201

6

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039

8,43

6(4

7,43

8)(1

08,1

41)

471,

647




NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

(CON

T.)

No

te 3

Inta

ngib

le a

sset

s20

1720

16

Co

stA

ccum

ulat

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amo

rtis

atio

nC

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ing

Va

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ccum

ulat

ed

amo

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nC

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Va

lue

Sof

twar

e1,

388,

764

(563

,210

)82

5,55

464

4,17

2(1

72,5

25)

471,

647

Reco

ncili

atio

n of

inta

ngib

le a

sset

s: 3

1 M

arch

201

7

Op

enin

g B

alan

ceA

dd

itio

nsD

isp

osa

lsA

mo

rtis

atio

nTo

tal

Sof

twar

e47

1,64

774

4,59

3-

(390

,686

)82

5,55

4

Reco

ncili

atio

n of

inta

ngib

le a

sset

s: 3

1 M

arch

201

6

Op

enin

g B

alan

ceA

dd

itio

nsD

isp

osa

lsA

mo

rtis

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nTo

tal

Sof

twar

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8,79

039

8,43

6(4

7,43

8)(1

08,1

41)

471,

647 NOTES TO THE ANNUAL FINANCIAL STATEMENTS (CONT.)

Note 4

Operating lease liability2017

R2016

R

Lease liability (straight lining) - 82,384

Total minimum lease payments

Not later than one year 965,079 905,247

Later than one year and not later than five years 1,375,654 719,433

2,340,733 1,624,680

The operating lease liability is the difference between actual payments and straight–lining as recognised in the statement of comprehensive income. The minimum lease payments reflected above only relate to the lease commitments; contractual commitments are disclosed under note 18.

Operating lease payments represent rentals payable by the ELRC for rentals of premises in the nine provincial offices. The leases typically run for a period of three to five years, with an option to renew. Rental expenses are increased annually as per the escalation clauses of the lease agreements.

Note 5

Retirement benefits2017

R2016

R

Defined contribution plan

The entity provides retirement benefits through a defined contribution plan to all its employees. The provident Fund is governed by the Pension Funds Act, 1956 (Act no 24 of 1956).

The entity is under no obligation to cover any unfunded benefits.

The total contribution to the scheme 3,308,340 3,122,143




NOTES TO THE ANNUAL FINANCIAL STATEMENTS (CONT.)

Note 6

Retirement benefits2017

R2016

R

Trade receivables 9,671 14,692

Prepayments 721 566,899

Receivable from employees 68,185 9,804

Deposits 143,783 95,883

Other receivables 52,112 70,730

Flight tickets refunds 61,776 55,151

Flight tickets for re-use 4,989 14,024

341,237 827,183

Trade and other receivables are not pledged as security. The carrying amount of the receivables approximate their fair value.

Note 7

Cash and cash equivalents2017

R2016

R

Cash and cash equivalents consist of:

Cash on hand 20,825 12,153

Current account 4,651,930 10,447,641

Short term deposits* 116,096,802 107,883,642

120,769,557 118,343,436

No restrictions have been placed on the use of the cash and cash equivalents for the operations of the entity. The carrying amount of these assets approximates to their fair value.

*Short term deposits are held with the South African Reserve Bank (Corporate of Public deposits)

Note 8

Trade and other payables2017

R2016

R

Trade payables 1,696,256 2,876,713

Retention payable - 335,823

Accrued leave pay 667,282 1,201,638

Accrued Performance Bonus 1,021,434 -

Accrued expenses 2,230,271 3,299,965

5,615,243 7,714,139

The carrying amount of the payables approximate their fair value.





Note 9

Shop stewards accrual2017

R2016

R

Current liabilities 19,321,689 20,301,385

Reconciliation of accrual 31 March 2017

Opening Balance

Reversal Addition Total

Fulltime shop stewards 20,301,385 (5,481,427) 4,501,731 19,321,689

Reconciliation of accruals: 31 March 2016

Short-termOpening Balance

Reversal Addition Total

Fulltime shop stewards 20,954,424 (6,876,516) 6,223,477 20,301,385

Shopstewards accrual comprise of costs to be claimed for services rendered by a parties to Council but for which claims have not been received. A reliable estimate is made based on the number of meetings attended and provisions as per Collective Agreement. The liability is assessed at the end of each reporting period.

Note 10

Provisions2017

R2016

R

Provision for SADTU 1,603,184 776,022

Provision for performance bonus - 725,703

Provision for 13th cheque 617,620 373,782

2,220,804 1,875,507

Reconciliation of Provisions: 31 March 2017

Opening Balance

Utilised Addition Total

Provision for SADTU 776,022 - 827,162 1,603,184

Provision for performance bonus 725,703 (725,703) - -

Provision for 13th cheque 373,782 (1,559,236) 1,803,074 617,620

1,875,507 (2,284,939) 2,630,236 2,220,804





Reconciliation of Provisions: 31 March 2016

Opening Balance

Utilised Addition Total

Provision for SADTU 711,893 (850,498) 914,627 776,022

Provision for performance bonus - - 725,703 725,703

Provision for 13th cheque - - 373,782 373,782

711,893 (850,498) 2,014,113 1,875,507

Provision for SADTU comprise of costs to be claimed for services rendered by Parties to Council but for which claims have not been received. A reliable estimate is made based on the number of meetings attended and provisions as per Collective Agreement.

Note 11

Revenue2017

R2016

R

Levies – FETC 2,011,365 2,095,763

Levies – DBE 46,826,125 46,694,330

48,837,490 48,790,093

All levies received bear no credit risk and are paid from salary deductions from educators and an equal contribution by employer.

Average number of educators is 406,992 (2016: 409,579).

Note 12

Other income2017

R2016

R

Interest income 8,371,056 7,479,156

Sundry income 928,056 66,583

Tender deposits - 17,250

9,299,112 7,562,989





Note 13The following items are included within employee cost expense:

Employee costs 2017

R2016

R

Basic earnings 18,721,212 18,162,459

13th cheque 1,803,772 1,779,256

Performance bonuses 1,021,434 987,826

Housing allowance 603,585 632,004

Medical aid 609,483 544,551

Provident fund 3,308,340 3,122,143

Unemployment Insurance Fund (UIF) 98,210 98,784

Skills Development Levy (SDL) 211,899 209,992

Leave pay accrual charge 104,803 118,282

Long-service awards - 90,000

26,482,738 25,745,297

Total number of employees 56 (2016: 61)

Note 14

Administration expenses2017

R2016

R

Conciliation 1,506,637 1,129,891

Arbitration 6,150,753 6,775,620

Condonation 157,000 166,485

Cost of quality control 118,875 135,000

7,933,265 8,206,996

Note 15

Taxation

The Council is exempt from the payment of income tax in terms of section 10(1) (CA) (I) of the Income tax Act, No. 58 of 1962.





Note 16

Auditor’s remuneration2017

R2016

R

Statutory audit fees – prior year 570,035 1,431,509

Consulting fees – other assurance - 114,000

Expenses 32,764 23,166

602,799 1,568,675

Note 17

Cash generated from operations2017

R2016

R

(Deficit) surplus 3,908,319 (114,342)

Adjustments for:

Depreciation and amortisation 3,033,923 1,638,747

Loss on assets disposed 8,114 510,500

Penalties and interest 2,544 670,356

Movement in operating leases (82,384) (19,534)

Movement in provisions 345,291 1,163,615

Interest income (8,371,056) (7,479,156)

Changes in working capital:

Trade and other receivables 485,948 618,312

Shop stewards accrual (979,695) (653,039)

Trade and other payables (2,098,896) 3,390,928

(3,747,892) (273,613)

Note 18

Commitments2017

R2016

R

Already contracted but not provided for:Capital expenditure - 437,639

Operating expenditure 2,083,539 3,228,070

2,083,539 3,665,709

This committed expenditure relates to capital expenses and operating expenses and will be financed by available retained surplus. Commitments disclosed take into consideration clauses as per the contractual agreements.





Note 19

Contingencies2017

R2016

R

Legal claims relates to civil cases against the Council for potential loss of income arising from a cancelled contract. The Council expects an inflow of resources embodying economic benefits in 2016.

Contingent asset - 50,128

No contingent liabilities arose during the financial year.

Note 20

Related parties

Employer party Department of Basic Education

Chairperson of Council

Members of key management

Advocate Luvuyo Bono

Ms Nolusindiso Foca

Ms Nthabiseng Shadung

Ms Octavia Makofane

Mr Matlose Moela

Mr Frederick Moloisi

Ms Nelisiwe Bongco

Trade unions South African Democratic Teachers Union (SADTU)Combined Trade Union – Autonomous Trade Union (CTU-ATU)

Related party transactions

Fees paid to related parties in respect of services rendered

2017

R2016

R

SADTU - 850,498

Advocate L. Bono* 263,228 97,833

Advocate P. Bono - 38,753

263,228 987,084

* This relates to the fees paid for services rendered by the independent Chairperson as a panellist in matters of arbitration or dispute resolution. The Chairperson’s decisions in dispute resolution and arbitration matters do not affect the financial position of the Council.





Note 20 (cont.)

Executive emoluments (Board fees)

2017R

2016R

Advocate L. Bono 146,394 293,719

Members of the ELRC Executive committee did not receive emoluments during the financial fees as per collective agreement. The Board fees to date amount to R 146,394.

Rent Paid to related party

2017R

2016R

South African Democratic Teachers Union 208,000 192,000

Audit Committee Fees 2017

Audit Committee Members Daily Fee Travel Total

Mr T Moeng – Resigned 24 August 2016 30,272 - 30,272

Mr M Mahonga – Resigned 24 August 2016 18,368 - 18,368

Mr SA Ngobeni – Appointed 24 August 2016 42,976 1,234 44,210

Mr B Mbewu – Appointed 24 August 2016 13,890 - 13,890

Ms T Sihlaba – Appointed 24 August 2016 9,298 205 9,503

114,804 1,439 116,243

Audit Committee Fees 2016

Audit Committee Members Daily Fee Travel Total

Mr T Moeng – Appointed 18 June 2013 36,240 - 36,240

Mr M Mahonga – Appointed 18 June 2013 28,768 - 28,768

Mr SA Ngobeni – Appointed 18 June 2013 26,787 - 26,787

91,795 - 91,795

Non-Executive members serve in the audit committee of the ELRC. The Audit Committee sits for four meetings annually and any other special meetings.





Note 20 (cont.)

Key Management Personnel

Key management information

Class Description Number of members

Executive members Accounting Authority 11

Non-executive members Accounting Authority 3

Executive management Accounting Officer/Executive 2

Senior management Management 4




NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

(CON

T.)

No

te 2

0 (c

ont.)

Exe

cuti

ve m

anag

emen

t em

olu

men

ts

Exe

cuti

ve m

anag

emen

t em

olu

men

ts

31 M

arch

201

7B

asic

sa

lary

13th

cheq

ue

Per

form

ance

b

on

us

Pro

vid

ent

Fu

nd

co

ntr

ibu

tio

n

Trav

el &

H

ou

sin

g

Allo

wan

ces

Oth

er

ben

efits

*To

tal

Ms

NO

Foc

a94

9,74

778

,843

65,2

9417

0,95

413

2,87

219

,172

1,41

6,88

2

Ms

NA

Sha

dung

- ap

poin

ted

01 A

ugus

t 201

653

4,81

550

,683

-96

,267

-30

,435

712,

200

Mr

O M

afor

a –

Res

igne

d 30

Jun

e 20

1618

4,72

230

,787

-33

,250

26,9

1795

,510

371,

186

1,66

9,28

416

0,31

365

,294

300,

471

159,

789

145,

117

2,50

0,26

8

Exe

cuti

ve m

anag

emen

t em

olu

men

ts31

Mar

ch 2

016

Bas

ic

sala

ryP

erfo

rman

ce

Bo

nus

13th

Ch

equ

e

Pro

vid

ent

Fu

nd

C

on

trib

uti

on

Trav

el &

H

ou

sin

g

Allo

wan

ces

Oth

er

ben

efits

*

Tota

l

Ms

NO

Foc

a87

0,58

753

,153

72,5

4915

6,70

613

1,22

032

,526

1,31

6,74

1

Mr

OA

Maf

ora

– ap

poin

ted

01 O

ctob

er 2

014

686,

700

-57

,225

123,

606

69,9

9611

5,58

91,

053,

116

1,55

7,28

753

,153

129,

774

280,

312

201,

216

148,

115

2,36

9,85

7

* O

ther

ben

efits

com

pris

e M

edic

al A

id F

ringe

ben

efit,

Cas

h A

llow

ance

and

UIF

.





Note 20 (cont.)

Senior Management

Senior management emoluments31 March 2017

Basic salary13th

Cheque

Provident Fund

contribution

Other benefits*

Total

Ms O Makofane 600,530 50,196 108,095 33,465 792,286

Ms N Bongco 606,877 50,740 109,238 76,499 843,354

Mr FS Moloisi 618,679 51,727 111,363 23,896 805,665

Mr MP Moela 606,877 50,740 109,238 62,493 829,348

2,432,963 203,403 437,934 196,353 3,270,653

Senior management emoluments 31 March 2016

Basic salary13th

cheque

Provident Fund

contribution

Other benefits*

Total

Ms O Makofane – appointed 01 May 2015

508,497 46,231 91,529 33,707 679,964

Ms N Bongco 559,860 46,689 100,599 79,422 786,570

Mr FS Moloisi 570,917 47,557 102,468 67,105 788,047

Mr MP Moela 559,860 46,689 100,599 67,826 774,974

2,199,134 187,166 395,195 248,060 3,029,555

* Other benefits comprise Medical Aid fringe benefit, Cash Allowance, UIF and Performance Bonus.

Note 21

Irregular expenditure2017

R2016

R

Opening balance 706,409 145,302

Add: Irregular expenditure - current yearLess: Amount condoned

19,993(547,810)

561,107-

Closing balance 178,592 706,409

The Council incurred irregular expenditure relating to non-compliance with the requirements of Treasury regulations 16A3 and Practice note 8 of 2007/8, wherein at least three quotations were not obtained from a list of prospective suppliers for procurements of goods or services for value above R2 000. It was also noted that in some instances the suppliers were appointed without completing all the required standard bidding forms (SBD).

The Council has implemented controls to ensure that all supply chain requirements are complied with. The irregular expenditure has not resulted in financial loss, an investigation has been instituted for the disclosed irregular expenditure as at year end.





Note 22

Fruitless and wasteful expenditure 2017 2016

Opening balance 77,522 26,183

Fruitless and wasteful expenditure incurred during the yearLess: Recovered during the year

73,666(28,111)

52,977-

Less: Written off during the year (3,687) (1,638)

Closing balance 119,390 77,522

The fruitless and wasteful expenditure relates to expenses incurred for late payment of supplier accounts, non-or late cancellation of travel and accommodation arrangement made for dispute resolution matters and non - attendance of meetings and training by some party members. The council continues to monitor these occurrences and where applicable controls are in place to assist the Council to recover these amounts.

Note 23

Financial instruments risk management

The Council’s activities has limited exposure to financial risks, market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Risk management is carried by the Risk Management Committee under a policy approved by the Council.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash. The Council’s primary source of funding is through equal contributions by the parties, which consist of the employer and the employees. The Council maintains liquidity by limiting capital and operational expenditure within the pre-approved budget.




NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

(CON

T.)

No

te 2

3 (c

ont.)

The

tabl

e be

low

illu

stra

tes

the

Cou

ncil’s

exp

osur

e to

liqu

idity

ris

k fro

m fi

nanc

ial l

iabi

litie

s:

2017

No

tes

Deb

t in

stru

men

t at

am

ort

ised

co

st

Fina

ncia

l lia

bili

ties

at

amo

rtis

ed

cost

Leas

es

Eq

uity

and

no

n-fi

nanc

ial

asse

ts a

nd

liab

iliti

es

Tota

l

RR

RR

R

Cat

ego

ries

of

fin

anci

al in

stru

men

ts –

201

7

Ass

ets

No

nC

urr

ent

Ass

ets

Pro

pert

y an

d eq

uipm

ent

--

-30

,883

,229

30,8

83,2

29

Inta

ngib

le a

sset

s-

--

825,

554

825,

554

Tota

l-

--

31,7

08,7

8531

,708

,785




2017

No

tes

Deb

t in

stru

men

t at

am

ort

ised

co

st

Fina

ncia

l lia

bili

ties

at

amo

rtis

ed

cost

Leas

es

Eq

uity

and

no

n-fi

nanc

ial

asse

ts a

nd

liab

iliti

es

Tota

l

RR

RR

R

Cur

rent

Ass

ets

Trad

e an

d ot

her

rece

ivab

les

527

2,33

1-

-68

,906

341,

237

Cas

h an

d ca

sh e

quiv

alen

ts7

120,

769,

557

--

-12

0,76

9,55

7

Tota

l12

1,04

1,88

8-

-68

,906

121,

110,

794

Tota

l Ass

ets

121,

041,

888

--

31,7

77,6

8915

2,81

9,57

9

Eq

uity

and

Lia

bili

ties

Eq

uity

Acc

umul

ated

sur

plus

-

--

125,

661,

843

125,

661,

843

Tota

l

--

-12

5,66

1,84

312

5,66

1,84

3

Cur

rent

Lia

bili

ties

Trad

e an

d ot

her

paya

bles

8-

5,61

5,24

3-

-5,

615,

243

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visi

ons

10-

--

2,22

0,80

42,

220,

804

Sho

p st

ewar

ds li

abilit

y -

--

19,3

21,6

8919

,321

,689

Tota

l

-5,

615,

243

-21

,542

,493

27,1

57,7

36

Tota

l Eq

uity

and

Lia

bili

ties

-

5,61

5,24

3-

147,

204,

336

152,

819,

579

NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

(CON

T.)

No

te 2

3 (c

ont.)




NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

(CON

T.)

No

te 2

3 (c

ont.)

2016

No

tes

Deb

t in

stru

men

t at

am

ort

ised

co

st

Fina

ncia

l lia

bili

ties

at

amo

rtis

ed

cost

Leas

es

Eq

uity

and

no

n-fi

nanc

ial

asse

ts a

nd

liab

iliti

es

Tota

l

RR

RR

R

Cat

ego

ries

of

fin

anci

al in

stru

men

ts –

201

6

Ass

ets

No

nC

urr

ent

Ass

ets

Pro

pert

y an

d eq

uipm

ent

2-

--

32,0

84,6

7532

,084

,675

Inta

ngib

le a

sset

s

3

--

-47

1,64

747

1,64

7

Tota

l-

--

32,5

56,3

2232

,556

,322

Cur

rent

Ass

ets

Trad

e an

d ot

her

rece

ivab

les

625

0,48

1-

-57

6,70

282

7,18

3

Cas

h an

d ca

sh e

quiv

alen

ts

711

8,34

3,43

6-

--

118,

343,

436

Tota

l11

8,59

3,91

7-

-57

6,70

211

9,17

0,61

9

Tota

l Ass

ets

118,

593,

917

-

-33

,133

,024

151,

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941




NOTE

S TO

THE

ANN

UAL

FINA

NCIA

L ST

ATEM

ENTS

(CON

T.)

No

te 2

3 (c

ont.)

2016

No

tes

Deb

t in

stru

men

t at

am

ort

ised

co

st

Fina

ncia

l lia

bili

ties

at

amo

rtis

ed

cost

Leas

es

Eq

uity

and

no

n-fi

nanc

ial

asse

ts a

nd

liab

iliti

es

Tota

l

RR

RR

R

Eq

uity

and

Lia

bili

ties

Eq

uity

Acc

umul

ated

sur

plus

-

--

121,

753,

525

121,

753,

525

Tota

l

--

-12

1,75

3,52

512

1,75

3,52

5

Cur

rent

Lia

bili

ties

Trad

e an

d ot

her

paya

bles

8-

7,71

4,14

0-

-7,

714,

140

Ope

ratin

g le

ase

liabi

lity

4

--

82,3

84-

82,3

84

Pro

visi

ons

10

--

-1,

875,

508

1,87

5,50

9

Sho

p st

ewar

ds li

abilit

y -

--

20,3

01,3

8520

,301

,385

Tota

l

-7,

714,

140

82,3

8422

,176

,893

29,9

73,4

16

Tota

l Eq

uity

and

Lia

bili

ties

-

7,71

4,14

082

,384

143,

930,

418

151,

726,

942





Note 24

Going Concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

Note 25

Operating expenses2017

R2016

R

Accommodation expenses 507,384 582,900

Administration and management fees 264,339 855

Advertising and Recruitment 520,604 556,791

Arbitration expenses 6,150,753 6,775,620

Assets below R5000 22,377 32,386

Auditors remuneration 602,799 1,568,675

Bad debts written-off - 61,214

Bank charges 45,902 58,199

Board fees 146,394 212,610

Cleaning and sanitation 128,335 95,392

Computer expenses 544,670 288,595

Conciliation expenses 1,506,637 1,129,891

Condonation expenses 157,000 166,485

Consulting and professional fees 490,887 410,189

Consumables 110,447 106,996

Delivery expenses 23,662 18,226

Depreciation and amortisation 3,033,923 1,638,747

Dispute Prevention Support 8,105,378 10,246,607

Employee related costs 26,482,737 25,745,297

Gifts 4,498 38,107

Fruitless and wasteful expenditure 71,122 52,977

Health and safety expenses 5,135 9,659

Implementation of Acts and Agreements 209,603 80,051

Insurance 254,529 293,169

Legal Expenses 829,416 685,875

Loss on disposal of assets 8,114 522,805

Motor vehicle expenses 27,697 26,835





Note 25 (cont.)

Operating expenses (cont.)2017

R2016

R

Printing and stationery 1,060,017 441,579

Quality control expense 118,875 135,000

Governance and chamber expenses 802,005 1,179,003

Refreshments 328,419 352,763

Rentals 1,238,120 1,135,885

Repairs and maintenance 288,709 225,797

Research and Development 206,194 690,189

Reversal of shopstewards accrual (5,481,427) (6,876,516)

Training 588,766 2,077,346

Security 612,728 386,851

Storage and removal 31,208 300,436

Subscriptions fees and licence cost 138,204 259,444

Telecommunication costs and postal fees 447,682 547,904

Travelling costs 2,395,533 2,133,944

Municipal expenses 1,096,184 894,061

Venue hire expenses 6,591 444,356

Workman’s compensation 62,877 62,443

World Teacher’s Day 30,710 1,428

54,225,737 55,797,066




Sta

tem

ent

of

Co

mp

aris

on

of

Bud

get

and

Act

ual A

mo

unts

fo

r th

e ye

ar e

nded

31

Mar

ch 2

017

Des

crip

tio

nN

ote

31 M

arch

20

17 A

ctua

lA

pp

rove

d

Bud

get

201

7D

iffer

ence

Ref

Tota

l Inc

om

e58

,139

,367

73,2

77,7

91

1

5,14

1,18

9

Rev

enue

48,8

37,4

9067

,036

,624

18,

199,

134

Levi

es

1148

,837

,490

48,0

00,0

00

(8

37,4

90)

(2%

)1

Tran

sfer

from

rese

rves

-19

,036

,624

19

,036

,624

10

0%2

Oth

er In

com

e12

9,29

9,11

26,

241,

167

(3,0

57,9

45)

Sun

dry

inco

me

928,

056

-

(9

28,0

56)

(100

%)

3

Inte

rest

inco

me

8,37

1,05

66,

241,

167

(2,1

29,8

89)

(34%

)3

Exp

end

itur

e(5

4,21

7,62

5)(7

3,27

7,79

1)

1

9,06

0,16

626

%

Per

sonn

el re

late

d ex

pens

es13

(26,

482,

738)

(27,

802,

430)

1,3

19,6

925%

4

Adm

inis

trat

ion

expe

nses

(7,9

33,2

65)

(9,9

80,0

11)

2,

046,

746

21%

5

Dep

reci

atio

n an

d am

ortis

atio

n(3

,033

,923

)(2

,000

,000

)

(1

,033

,923

)(5

2%)

6

Rev

ersa

l of s

hops

tew

ards

acc

rual

5,48

1,42

7-

5,

481,

427

100%

7

Cap

ital e

xpen

ses

(2,1

43,5

01)

(4,0

30,2

00)

1,

886,

699

47%

Rep

airs

and

mai

nten

ance

(288

,709

)(3

55,2

50)

66,

541

19%

8

Gen

eral

exp

ense

s(1

9,81

6,91

6)(2

9,10

9,90

0)

9,29

2,98

432

%9

Gai

ns/(l

osse

s) o

n di

spos

al o

f ass

ets

and

liabi

litie

s(8

,114

)-

(

8,11

4)(1

00%

)

Inte

rest

and

pen

altie

s(2

,544

)-

(

2,54

4)

(100

%)

Sur

plu

s fo

r th

e ye

ar e

ndin

g 3

1 M

arch

201

73,

908,

319

-

(3

,908

,319

)





Note 26

Budget compared to the statement of comprehensive income

The Council presents its approved annual budget and the financial statements on an accrual basis. The Council uses National Treasury budgets templates (ENE/MTEF) for public entities to prepare its budgets. The following represents explanations to the reconciliations of the significant variances between the approved budgets and the Statement of Comprehensive income:

26.1. LeviesLevies has increased by 2% despite the decrease in the number of contributors from DBE.

26.2. Transfer from reservesThis is the amount of money anticipated to be transferred from the cash reserves to augment the levies to fund operating expenses. No transfer was made from reserves in the current financial year.

26.3. Other Income Amount is made up by income from penalties on Panellists that do not submit their claims in within the prescribed timelines as governed by the Fee Policy.

The Council hold reserves with financial institutions that earn interest based on the performance of the markets and the effective floating rates earned for the period under review is an average of 7.6%.

26.4. Personnel related expensesPersonnel related costs were 5% below the budgeted cost due to the reduced number of employees and the utilisation of annual leave as opposed to cash pay-out.

26.5. AdministrationExpenditure was 21% below the budget due to cost containment measures introduced to reduce Panellists’ cost of travel and accommodation on disputes referred.

26.6. Depreciation Completion of the of the building refurbishment project resulted in the increase in the depreciation as well as the aging of the assets by 52% above the budget.

26.7 Reversal of shopsteward accrualAmount is made up by reversal of the shop-steward accrual due to prescription. This amount was not budgeted for.





Note 26 (cont.)

26.8 Repairs and maintenance The cost for repairs and maintenance reduced as Council invested in new computer equipment and there is minimal maintenance required on the building after the refurbishment.

26.9 General expensesThe general expenses have decreased as a result of cost cutting measures implemented by the Council and the underperformance in collective bargaining.

Notes


Notes


Notes


Notes


Notes


REGISTERED NAME:Education Labour Relations Council

REGISTRATION NUMBER:LR2/6/6/110

PHYSICAL ADDRESS:261 West Avenue

Centurion0046

POSTAL ADDRESS:Private Bag X126

Centurion0046

TELEPHONE NUMBER:+27 12 663 7446

FAX NUMBER:+27 12 663 9604

EMAIL ADDRESS

WEBSITE ADDRESS:www.elrc.org.za

[email protected]

ANNUAL REPORT


in public education

Education Labour Relations Council (ELRC)

2016/17


Documents

ANNUAL REPORT · 2017-10-06 · to restore collective bargaining for improvement in public education 10 | Education Labour Relations Council | 2016/17 Annual Report 4. LEGISLATIVE